Mutual fund investors lose rightful gains! Here’s what happened with orders on Lok Sabha poll results day

financialexpress.com:

The Indian stock market witnessed a massive sell-off on June 4, the day when votes for the Lok Sabha polls were counted. Intraday, front-line indices, including Sensex and Nifty, plunged as much as 8% after early trends started suggesting that the BJP-led NDA was not achieving the 400+ seats which it aimed for.

Amid this massive plunge in the market, mutual fund investors tried to take advantage of lower NAV of funds due to crash in stock valuations. However, many mutual fund investors alleged that they ordered for MF units on June 4 but they were executed the next day.

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According to media reports, this happened because mutual fund platforms claimed that transactions got impacted due to some issues at payment aggregators end.

One of the reports citing officials at brokerages Zerodha and Groww said that the transactions could not be processed for the same day NAV even though they were executed before the cut-off time for the day. As a result of this, investors suffered losses as units were allotted at next day’s higher NAV. The stock market recovered by over 3% on June 5.

Many retail investors took to different social media platforms to complain about this, saying they placed orders for their mutual fund units before 3 P.M. on June 4, but received units based on NAV of June 5.

The market regulator, SEBI, has not responded to the media reports on this issue.