What it is
In investing, the cut-off time is the latest time in a day that you can make a transaction (such as an investment or a redemption) for a specific fund and have it begin processing on the next banking day.
If you make a transaction beyond this cut-off time, the earliest it can start being processed is after 2 banking days.
Financial institutions may set their own cut-off time for their products. Also, different fund types from the same institution may have cut-off times that aren’t all the same.
What it means for you
Knowing a fund’s cut-off time allows you to figure out when your transaction will start processing. If you want your transaction to finish as soon as possible, then you should make it on or before this time.
Remember that your transaction time (on/before the cut-off time or afterwards) determines the Net Asset Value Per Unit (NAVPU) that will be used for your transaction.
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