Mutual fund orders work differently from stocks — they're grouped into batches and executed at a scheduled time, not instantly. This article explains how that process works so you know what to expect after placing an order.
What determines when your order executes
Three things control when your order is processed and at what price:
1. The cutoff time
Each fund has a daily cutoff (for example, 10:00 AM). This determines which processing batch your order falls into.
Before cutoff — your order is included in that day's batch.
After cutoff — your order moves to the next working day's batch.
Weekends and holidays — orders are queued and picked up in the first available batch on the next working day.
2. Subscription and redemption days
Mutual funds don't process orders every day. Each fund has a defined schedule:
Subscription days — when buy orders are accepted and processed.
Redemption days — when sell orders are accepted and processed.
Orders placed outside these days are queued for the next available day.
3. Same-day vs. next-day execution
Once batched, your order executes based on the fund's cycle:
Fund type | When it executes | Price used |
Same-day | That same day | Closing price of the batch day |
Next-day | One working day later | Closing price of the execution day |
Example: order placed Thursday evening
Assume a 10:00 AM cutoff, with subscription days Sunday–Thursday.
When | What happens |
Thursday evening | Order placed after cutoff — held in queue. Friday and Saturday are not subscription days. |
Sunday, 10:00 AM | First available processing window. Order is batched and sent to the asset manager. |
Sunday or Monday | Execution day depends on the fund type: same-day funds execute Sunday, next-day funds execute Monday. |
After execution | Units appear in your portfolio once the asset manager confirms the trade. |
Where to find a fund's schedule in the app
Open any mutual fund page and check the Fact Sheet. It shows:
Cutoff time — the daily deadline for submitting orders
Subscription days — the days buy orders are processed
Redemption days — the days sell orders are processed
Each fund sets its own schedule, so always check before placing an order.
FAQs
Why is my order still pending?
This is expected. The most common reasons are:
Your order was placed after the cutoff and moved to the next batch.
It's not a subscription or redemption day for that fund.
The fund follows a next-day execution cycle, so there's an additional processing day after batching.
Your order will move forward automatically once it reaches the next available processing window.
Do orders execute on weekends or holidays?
No. Orders placed on weekends or public holidays are queued and picked up on the next available subscription or redemption day.
Can I cancel a mutual fund order?
Yes, but only while the order is in Pending status.
How does mutual fund pricing work?
Mutual funds are priced using the Net Asset Value (NAV). The NAV represents the total value of the fund's assets minus its liabilities, divided by the number of units in the fund. In simple terms, it reflects the fund's per-unit value based on its overall performance.