Although stock markets will remain open on Budget Day, February 1, 2025, mutual fund transactions will not be processed as asset management companies (AMCs) have marked the day as a non-business day. As a result, investors will not be able to buy or redeem mutual fund units on February 1, and any transaction requests submitted will be executed at the closing net asset value (NAV) on Monday, February 3.
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Mutual Fund Transactions Halted for Budget Day
A notice from the Bombay Stock Exchange (BSE) confirmed that mutual fund schemes would observe a non-business day on February 1 across all AMCs.
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The BSE stated: “Members are hereby informed that all Mutual Funds are observing Non-Business Day / Non-Transaction Day on the Union Budget Day on Saturday, February 1, 2025, for all schemes. Therefore, the Exchange shall also observe a non-business day for Mutual Fund schemes on the BSE StAR MF platform on the day of the Union Budget presentation.”
While NAVs for mutual fund schemes will be declared as usual, no units will be allotted or redeemed at Saturday’s NAV due to the non-business day classification. Investors submitting redemption or purchase requests on February 1 will have their transactions processed at Monday’s (February 3) NAV.
ETFs to Remain Open for Trading
Unlike mutual funds, Exchange-Traded Funds (ETFs) will be available for trading, as the equity markets remain open. NAVs for ETFs will also be declared on February 1, aligning with benchmark indices. Since ETFs are bought and sold directly on stock exchanges, investors can continue trading ETF units at market prices throughout the day.
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Stock Markets to Operate on Budget Day
Indian stock exchanges, including the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE),
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