Mutual Funds Announces Holiday on Budget Day

Despite the equity markets remaining operational on February 1, 2025, for the Union Budget presentation, mutual fund transactions will not be processed. Asset management companies (AMCs) have designated the day as a non-business day, meaning no sales or redemptions of mutual fund units will take place.

Mutual Fund Transactions Suspended

On Budget Day, all mutual funds will observe a non-business day, as per a notice issued by the Bombay Stock Exchange (BSE). While net asset values (NAVs) for mutual fund schemes will still be declared, investors will not be able to buy or redeem units at the day’s NAV. Instead, any requests for transactions made on February 1 will be processed at the closing NAV of Monday, February 3. The restriction applies across all schemes, and the BSE StAR MF platform will also observe a non-business day.

ETF Trading and Equity Market Operations

In contrast to mutual funds, exchange-traded funds (ETFs) will remain active on February 1. As stock markets are open, ETF units can be bought and sold at market prices, with their NAVs declared in alignment with benchmark indices. The National Stock Exchange (NSE) and the BSE have confirmed full trading sessions on Budget Day, maintaining the precedent set in previous years, such as on February 1, 2020, and February 28, 2015, when markets operated on Saturdays for the Budget presentation.

Conclusion

While equity markets will function as usual on February 1, mutual fund transactions will be restricted due to AMCs designating it as a non-business day. ETFs, however, will continue trading in line with stock market movements.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.