Ask ET Mutual Funds: Why the NAV allocation date is April 4, not March 31?

I made an investment in Axis Mutual Fund online on 31st March 2017, but the NAV allocation date is shown April 4, 2017 Due to this I am losing out on deduction for financial year 2016-17. Can I do anything in this regard?

--Tarun Sharma

Mutual funds have a cut-off time for allocation of NAV date. For example, Axis Long Term Equity Fund has a cut-off time of 3 pm to get the NAV on of the same day. If you transact after the cut-off time you would get the NAV of the next working day. It seems, this is what has happened in your case. March 31 was a Friday. So, the next two days were Saturday and Sunday. Your transaction might have taken place on April 3 and the fund might have given you’re the NAV of the next working day. You can check with the mutual fund house for confirmation.

You may not be able to do anything about it and claim tax deduction under Section 80C for the last financial year. However, you can claim a tax deduction for your investment in the current financial year. Also, please do not delay your tax saving investments for the last day of the financial year.


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