Mutual Fund allotment for various invesors got delayed on June 4 despite putting order before the cut off time complained investors on social media.

What Happened: On June 4, markets fell as the BJP got less seats in the election results compared to the exit polls prediction. Nifty fell 5.93% to 21,884.50. Investors who tried to buy mutual funds at lower net asset value (NAV) found their orders didn’t get placed in different investment platforms despite putting the order before 2:30 pm.

Instead the order got placed on June 5’s NAV when markets recovered 3%. Investors said that due to the delay in acquisition, they lost gains from buying when the markets crashed.

Investors complained on social media that they missed out potential gains due to the delay in the allotment.

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In mutual funds, investors are allocated units based on the (NAV) on the day their funds are received in the mutual funds’ accounts, provided this occurs before the designated cut-off time which is 2:30 pm for equity funds.

Zeordha said the delay in execution was caused by issues with payment aggregator and Groww said it was due to delay in money movements and spike in daily transactions.

Bombay Stock Exchange also came out with a clarification saying there was no technical glitch from the BSE clearing house.

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