Important Update: Know These New Rules Before Investing In Mutual Fund, There Will Not Be Big Loss

Sebi, the regulatory body of the stock market and Mutual Fund, has made some major changes. Knowing which is very important for an investor.

Sebi, the regulatory body of the stock market and Mutual Fund, has made some major changes. Knowing which is very important for an investor. According to the current rules, till now it used to be that as soon as the application of an investor went to a Mutual fund company, the same day you were allotted the unit according to the Net Asset Value (NAV). However, now Sebi has changed this rule.

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In its new circular, Sebi, the regulatory body of the stock market and Mutual Fund, will now get a closing NAV on Mutual Fund orders of less than two lakh rupees on the day the money is transferred to AMCs. This new rule of Sebi will come into force from 1 January 2021. According to the circular, this new rule Overnight and Liquid Mutual Fund are excluded.

Investor may suffer loss due to new rules

Most investors of mutual funds understood the volatility of the market and invested it. At the same time, I used to take this opportunity to cash in on your understanding. Actually, the rule of Mutual fund cut off time is currently in force. However, this will not happen after the New Testament. Therefore, the biggest losers will be those new investors who invest by looking at the market. However, the new rules will apply only to investors whose investment is up to Rs 2 lakh.

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