Question

What is 'NAV applicability' for a switch transaction between two schemes of the same AMC?

Accepted Answer

The switch-out scheme gets the applicable NAV based on its cut-off time; the switch-in scheme also applies based on its applicable cut-off — both determined by the same transaction timestamp — For a switch, the switch-out (redemption) and switch-in (purchase) are treated as separate transactions but processed simultaneously. The applicable NAV for each leg is determined by the respective scheme's cut-off time rules. For example, switching from an equity fund (3 PM cut-off) to another equity fund before 3 PM gets same-day NAV for both legs.