New Delhi, July 5 -- Placing a mutual fund order today does not guarantee that you will receive units at today's Net Asset Value (NAV). Under SEBI rules, placing the order is only one part of the process.

For purchase transactions, the applicable NAV depends not only on when the application is submitted but also on when the investment amount is credited to the mutual fund scheme's bank account.

Understanding this rule can help investors avoid confusion when they receive the units at a different NAV than expected. Here's what every investor should know.

Cut-off timing refers to the deadline on a business day that determines which day's Net Asset Value (NAV) will apply to a mutual fund purchase or redemption transaction.

There are two c...