07 Jun , 2024 By : Debdeep Gupta
Indian stock markets witnessed the biggest fall in four years on June 4 when the Bharatiya Janata Party (BJP) received a smaller mandate in the 2024 elections, compared to exit poll estimates. With this market crash, reports suggested that many mutual fund investors tried to buy units on election results day, but they ended up losing money because their orders got delayed.
Booking platforms like Groww blamed the BSE for a glitch in its mutual fund system, which caused the orders to go through the next day after the markets had already recovered some of their losses. However, BSE denied it was at fault.
A user posted on 'X' formerly known as Twitter that he purchased a midcap mutual fund through Groww application on June 4 at 12.17 pm, but the NAV showed for June 5.
Likewise, another user said that they bought mutual fund units on June 4 and the order was confirmed by 2 pm. "However, the units were allocated to me with NAV of June 5, why the discrepancy?" the user wrote in its 'X' post.
Typically, if an investor invests by 2 pm, they will receive NAV for that day.
Several investors of Zerodha, Groww, Upstox, and Angel One also vented their anger on social media platforms about their inability to square off their positions in equities or F&O.
"Groww has crashed and because of this glitch, I was not able to add any funds, and positions got squared off into losses. Users and retail investors are losing money by getting squared off," a user posted on X, formerly known as Twitter.
Similarly, another X user also complained of the ongoing glitch and posted that a glitch of a single second is 'dangerous.'
While Zerodha said the issue was resolved at 11.50 am, Groww said that it was resolved at 10.41 am.
On June 4, the benchmark Nifty 50 index fell nearly 6 percent, wherein investors lost around Rs 31 lakh crore on the stock markets. The combined market cap of BSE-listed firms also retreated to Rs 394 lakh crore on the day, from Rs 425 lakh crore.
Mutual fund values also dropped, leading many investors to place purchase orders to take advantage of the low prices. However, many of these orders were processed the next day, when the market had bounced back by 3 percent.
This delay potentially caused investors to lose at least 3 percent on their mutual fund purchases on June 4, suggested reports. Meanwhile, those who invested in exchange-traded funds (ETFs) also faced issues, as ETFs were trading at a much higher price than their actual value.
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