In India, stock markets remain closed on weekends. However, the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) conduct a special Muhurat Trading session every year on Diwali Laxmi Pujan day. This year, it will be held on Sunday, 8 November, marking the beginning of Samvat 2083.
The special equity trading session will run from 2:20 pm to 3:30 pm, with a pre-open session from 2:05 pm to 2:20 pm. But can investors also buy mutual funds, index funds, and ETFs during this special session? Here’s what experts have to say.
Can you buy mutual funds and ETFs during Muhurat Trading?
Harsh Vardhan Dawar, ACA, CFA, FRM, Founder, Wealth Cafe, said investors can buy and sell ETFs through their brokers during the live Muhurat session. Orders are executed at prevailing market rates. Trades executed on 8 November will follow the T+1 settlement cycle, with ETF units to be credited in demat accounts on Monday, 9 November.
Mutual funds, including index funds, work differently. Investors can place orders anytime, but there is no special Muhurat session or live market pricing. Orders placed on Sunday will be processed on Monday, 9 November at that day’s closing NAV. Units should be credited within two working days by Wednesday, he added.
Anooshka Soham Bathwal, CEO and Founder of Dhanvesttor, said mutual fund and index fund transactions are not listed securities like ETFs and are processed on weekdays. Some AMCs may reject Sunday orders, while others may accept them for processing on the next working day.
Vedant Gupte, Co-Founder and CEO of Trackk, said platforms may accept orders on holidays, but AMCs cannot process them as per SEBI rules. Zerodha, for instance, has said Kite SIP orders will move to the next trading day. Practices may vary across platforms, so investors should check with their brokers.
How to place ETF order during Muhurat Trading?
Gupte explained the process as follows:
- Before 2:05 PM: Make sure your trading/ demat account has funds and ETF trading is enabled.
- 2:05 to 2:20 PM (pre-open): Limit and market orders can be entered from 2:05 to 2:10 PM. From 2:10 PM, only limit orders can be entered, modified or cancelled, and the session closes at a random point in the last 2 minutes before 2:15 PM. Matching runs 2:15 to 2:17 PM, followed by a buffer until 2:20 PM.
- 2:20 to 3:30 PM (3:15 PM for CAS securities): Place a limit or market order, and it matches live in the order book.
- Trade confirmation: You get it immediately.
- Settlement: All trades executed in the Muhurat session result in settlement obligations. Under the standard T+1 cycle, units should reach your demat by the next settlement day, 9 November.
- Sale proceeds: Funds from a Muhurat sale may not be usable for trading until 11 November, because 10 November is a holiday.
What NAV will you get when buying mutual funds on 8 November?
Bathwal said orders placed on Sunday, 8 November will be considered received on Monday, 9 November, the next working day.
For most equity mutual funds, investors will get Monday’s NAV if the application and funds are received before the 3 pm cut-off. Otherwise, the subsequent applicable NAV will apply. Investors should not expect Sunday’s or the previous business day’s NAV. Actual processing depends on the AMC.
What should investors check before buying mutual funds and ETFs?
Prior to buying and selling in Muhurat Trading, investors need to look at the liquidity, volume of transactions, spread between bids and offers, and how close the market value is to the NAV of the ETF. Limit orders are preferred over market orders for the same reason, Bathwal suggested.
For mutual funds, investors should check whether their AMC or platform accepts transactions on Sunday. Lump-sum investments, SIPs and redemptions will follow regular business-day processing. SIPs due on Sunday will be processed on the next working day, she added.
Should you invest on Muhurat Trading day?
Gupte highlighted three considerations, saying Muhurat Trading is a symbolic tradition rather than a market advantage. Investors can treat it as an optional opportunity to start a long-term investment plan.
- Reasonable: Buying a small amount of a broad Nifty 50 ETF or index fund you already planned to buy, or starting an SIP.
- Better to avoid: Chasing gold or silver ETFs on festive sentiment, or putting in a large lump sum because the day feels auspicious. Prices in the short session can be volatile, and thin liquidity can widen spreads.
- Mutual fund investors: Do not rush. You will get Monday’s NAV either way, so you can place the order on Monday itself and avoid platform ambiguity.
| Parameter | ETFs | Mutual funds/index funds |
| Purchase | Through stock exchanges | Through AMCs or investment platforms |
| Pricing | Live market price | Applicable NAV |
| Order timing | 2:20 pm–3:30 pm on 8 November | Orders may be placed anytime, subject to platform rules; generally processed on 9 November. |
| Buying and selling | Possible during the special session | Processed on the next working day |
| Settlement/allotment | T+1; expected 9 November | Units expected within two working days, subject to processing |
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
About the Author
Sheetal Goel is a Content Producer at Livemint, where she covers corporate developments, personal finance, business trends, markets, and SEBI-related updates. She focuses on simplifying complex financial concepts and presenting them in a clear, reader-friendly manner, thereby helping audiences better understand investment trends, personal finance, and market developments. Her writing focuses on making finance more accessible to everyday readers while maintaining clarity, accuracy, and relevance.
She holds a degree in Economics (Hons.) along with an MBA in Finance, which has helped her develop a strong foundation in financial analysis, market understanding, and business reporting. Before joining journalism, she worked with finance and broking firms, where she closely followed market developments, investment strategies, and evolving industry trends. This practical exposure strengthened her understanding of financial markets. She has also written content across multiple formats and platforms, including YouTube, LinkedIn, and Instagram.
Over time, she has developed expertise in covering market-linked stories, investor-focused topics, and regulatory updates in a simplified yet informative style. She also enjoys reading and listening to Hindi poetry, reflecting her appreciation for literature and creative expression beyond the world of markets and numbers.