Cut-off time refers to the specific deadline by which investment transactions, such as mutual fund purchases or redemptions, must be submitted to be processed at that day's price. Orders placed after the cut-off time are processed at the next business day's price.
For most mutual funds, the cut-off time is typically 4:00 PM Eastern Time, coinciding with the close of the stock market. For example, if you submit a buy order for a mutual fund at 3:30 PM, it will be executed at today's NAV. If you submit it at 4:15 PM, it will be executed at tomorrow's NAV.
Understanding cut-off times is important for investors who want to ensure their transactions are processed at the desired price point.