Technical Glitch leaves Investors shatter; Buy-the-dip Didn’t work for Mutual Fund Investors on Election result day
The stock market of India saw the biggest fall in the last 4 years on June 4, when NDA (BJP) received a lesser mandate in the 2024 elections than expected in exit poll estimates.
Amid the market breakdown, many investors of mutual funds attempted to buy units on election day but ended up losing huge amounts of money because their orders were delayed, as per a report.
Grow, which is a broking platform accused BSE (Bombay Stock Exchange) of this glitch that happened in their mutual fund system. The MF system, allowed the orders to be processed the next day due to a glitch after the markets already recovered a significant part of their losses.
Yet, the BSE denied all the accusations of being at fault.
Investors showed their anger on various social media platforms. Many investors tweeted and shared their experience of trading on the election result day – 4th June.
One investor posted on Twitter that he tried to purchase a midcap mutual fund via Grow app on 4th June but NAV showed the date of 5th June.
Similarly, another investor said that he purchased the units of a mutual fund on 4th June and the bought order was confirmed by 2 PM. But the units were allocated to him with NAV of 5th June, he questioned -” Why such discrepancy?”.
Usually, if an investor buys and invests in a mutual fund by 2 pm, they will receive NAV for the same day.
Numerous Zerodha, Groww, Upstox and Angel One investors raised disappointment and anger on social media about their inability to square off their shares or F&O positions.
As per reports, this delay cost investors at least 3% on their mutual fund purchases on June 4.
