Units allotted for wrong NAV

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Understanding NAV and Mutual Fund Allocation at Miles Wealth

We understand that many investors are concerned about the accurate allocation of mutual fund units. In the spirit of transparency, we’d like to shed light on the behind-the-scenes process, clarifying any misconceptions.

What is NAV?

NAV stands for Net Asset Value, which represents the market value per share for a specific mutual fund. It is calculated by subtracting the total liabilities from the total asset value and dividing that figure by the number of shares outstanding. According to SEBI regulations, mutual funds must update their NAV by 9 PM every day.

How is NAV Allotted?

As per a SEBI circular dated September 17, 2020, mutual fund units are allocated at the NAV applicable on the day funds are realized. Realization of funds refers to whether the fund house has received your payment. This policy was implemented in February 2021 to ensure a smooth transaction process.

Cut-Off Timings and NAV Applicability

Type of Fund	Order Placement Cut-Off	Payment Receipt Cut-Off	NAV Applicability
Liquid / Overnight	12:00 noon	12:00 noon	Previous day
Liquid / Overnight	After 12:00 noon	After 12:00 noon	NAV of the day immediately preceding the next business day
All Other Funds	2:00 PM	2:00 PM	Same-day
All Other Funds	After 2:00 PM	After 2:00 PM	Next business day

Note: Orders placed on Saturdays, Sundays, or public holidays will be treated as orders placed on the next business day.

If you place an order before the cut-off time but the fund is not received before that time, your order will be processed the next business day, resulting in the next business day’s NAV.

What Happens After You Place a Mutual Fund Order?

1. Order Placed: Your mutual fund order is instantly communicated to the exchange.

2. Payment Collected: We initiate payment collection from you via payment gateways. Each payment gateway utilizes an underlying payment aggregator.

3. Payment Transferred to Clearing House: The collected funds are transferred from the payment aggregator to the exchange’s clearing corporation.

4. Order Validated by Exchange: The exchange validates your mutual fund order and the funds received from the payment aggregators. If within the cut-off time, the exchange forwards your order information and funds to the AMC/fund house.

5. Units Allocated by AMC: After conducting due diligence, the AMC/fund house allocates units to your portfolio.

Note: The transaction is completed only after the AMCs realizes the funds, adhering to SEBI guidelines to ensure fairness and uniform NAV applicability across the industry.

What If NAV Is Delayed for My Order?

While the SEBI NAV allocation process typically runs smoothly, rare instances may occur where NAV is delayed for a few users. At Miles Wealth, we are committed to transparency. If such a delay happens, we will keep you informed with timely updates through our app, email, or official social media channels.

If you have any concerns, questions, or suggestions, please reach out to us at support@mileswealth.in.

P.S. When it comes to effortless mutual fund investing, Miles Wealth is your top choice! We make investing easy with personalised mutual funds tailored to your risk tolerance and financial goals. No need to be a finance expert or spend hours researching—just invest in funds that truly suits you. Download Miles Wealth today!

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