What you need before starting
- PAN
- KYC — completed once, valid across the whole industry
- Bank account in your own name
- Nomination, or an explicit opt-out
KYC is done once through a KRA (KYC Registration Agency) and then works everywhere. If your KYC status shows as on hold or needs re-verification, transactions will fail until it is resolved — so check it before a time-sensitive investment rather than after.
A demat account is optional for ordinary schemes, which are held in a folio with the AMC and tracked by its registrar. ETFs are the exception: they trade on the exchange and need demat.
Where you can buy
| Route | Notes |
|---|---|
| Directly from the AMC's website or app | Direct plan; a separate login per AMC |
| MF Central / RTA platforms (KFin, CAMS) | Direct plan, consolidated across AMCs |
| Broker and investment platforms | Check carefully whether they offer direct or regular |
| Stock exchange platforms (BSE StAR MF, NSE MFSS) | Used by brokers behind the scenes |
| Bank or distributor | Usually a regular plan, with commission |
Cut-off timings: the rule that trips people up
Mutual funds have one NAV per day. Which day's NAV you receive depends on when your request was received and when your money actually reached the fund.
Current cut-off timings, as revised by SEBI:
| Scheme type | Transaction | Cut-off |
|---|---|---|
| Equity, debt and most other schemes | Purchase or switch-in | 3:00 PM, subject to funds being available for utilisation |
| Equity, debt and most other schemes | Redemption or switch-out | 3:00 PM |
| Liquid and overnight funds | Purchase or switch-in | 1:30 PM |
| Liquid funds | Redemption or switch-out | 3:00 PM |
| Overnight funds | Redemption or switch-out | 3:00 PM; up to 7:00 PM when the application is received through online mode |
The 7:00 PM online window is for overnight schemes only. Liquid-fund redemptions close at 3:00 PM whichever way you submit them.
This is the single most common source of "why did I get a different NAV?" queries. The order timestamp is not the trigger. The money arriving is.
After you invest
- Units are allotted at the applicable NAV, usually visible the next business day
- A confirmation arrives from the AMC and the registrar
- A Consolidated Account Statement (CAS) is emailed periodically, covering every fund you hold across all AMCs, linked by PAN
Redeeming
Place a redemption for units or for a rupee amount. Units are redeemed at the applicable NAV, exit load is deducted if any, and proceeds are credited to your registered bank account.
Payout timelines differ by scheme type — overnight and liquid funds are fastest, equity funds take longer — and SEBI prescribes maximum timelines the AMC must meet. Check the current prescribed timeline in the scheme document rather than assuming a number, as these have been shortened over time.
Redemption proceeds go only to the bank account registered in the folio. Changing your bank account requires a separate update, with its own verification, and doing it at the same time as a redemption usually delays the payout.
Things that go wrong, and how to avoid them
KYC not current. Transactions fail. Check before you need to invest.
Name mismatch. The bank account must be in the same name as the folio holder.
Mandate not registered. A SIP cannot start until the NACH or UPI autopay mandate is approved, which can take several working days. Register the mandate well before the first instalment date.
Wrong plan selected. Regular chosen instead of direct, often by default on the platform.
Nominee not added. As with demat accounts, this creates real difficulty for your family later.
Folio proliferation. Buying the same scheme through different platforms creates multiple folios. Not harmful, but it makes tracking messy. Consolidating early is easier than doing it after fifteen years.
Key takeaways
- PAN, KYC, a bank account and a nominee are all you need — a demat account is required only for ETFs.
- Most schemes have a 3:00 PM cut-off; liquid and overnight funds have a 1:30 PM purchase cut-off.
- For purchases, NAV depends on when the money actually reaches the fund, not when you submitted.
- The Consolidated Account Statement shows every fund you own across all AMCs, linked by PAN.
- Register the SIP mandate well before the first instalment date, as approval takes days.
Check your understanding
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