Buy-the-dip didn't work for mutual fund investors on election result day due to 'tech glitch'
Mutual fund investors, who were looking to buy the dip as the stock market crashed on Tuesday amid election results, were disappointed as a "technical glitch" delayed execution and they were allotted NAVs the next day.
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On a regular day, when you buy units before the cut-off time till 2 pm, same-day units are allotted but June 4 was an exception. Many investors complained that they invested well before the cut-off time but NAVs reflected the next day's price.
Many investors took to social media about the problem they faced and demanded compensation for the losses they incurred.
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Zerodha’s MF investment platform Coin said that the transactions got delayed due to issues with the payment aggregators.
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“This is due to a delay in reporting fund transactions from payment aggregators to the Indian Clearing Corporation (ICCL) across all platforms. The NAV applicability is determined by the exchange based on the date ICCL receives the funds,” said Zerodha.
Groww also said that the issue was due to delay in money movement as the process of money movement, order processing and NAV allocation is done via external parties.
