When do Mutual Funds buy & allot units after the SIP is received?

Mutual Funds allow investing via

• Fund house website (HDFC AMC, Motilal Oswal AMC, etc.)
• Broker (Zerodha Coin, Angel Broking, etc.)
• Third Party (Banks/Fintech Apps like Phonepe, Paytm, ET Money, etc.)

Now coming to the question, I would like to break it up into two parts:

Regarding Mutual Fund Buying:

1. New Subscription: It can take the mutual fund house 2–3 days to finish the complete processing along with Unit Allotment in your associated Folio(Unique Account Number assigned as per the Asset Management Company)
2. Existing Subscription: The allotment will done based on the time of subscription.

Regarding Mutual Fund Allotment:

1. For Equity Mutual Funds, if the order is placed before 1:30pm on a trading day, then the units are alloted in the 24hrs (subject to next day is also working/trading day for the markets)
2. The unit value called NAV is updated every end of day. The units alloted to an individual for an order placed before 1:30pm will recieve the NAV applicable on the end of the day

So, plan your investment accordingly

Hope this helps

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