Sumary of Unauthorised switch leaves mutual fund investors in shock:
- Kanika Gupta, one such affected investor, said that her entire investment in ICICI Prudential Mutual Ultra Short Debt Fund Direct was switched to a new ICICI Flexi Cap fund without her knowledge on July 12. Incidentally, the NFO of ICICI Flexi Cap closed the same day.
- ‘No proof from MF’“They (ICICI MF) are constantly blaming my broker app Groww, saying they received the order through them, but till date they have not provided me any proof to confirm their claim,” she said.
- “Though ICICI MF has assured that they will switch back the investment to my original fund without any loss or exit load, there was no entry in Groww account to authenticate the transfer,” Gupta said in a social media post.
- ”In a statement, ICICI Prudential said: “Basis instructions received from a few Registered Investment Advisors and transactions for a few customers were processed in the normal course of business.
- ” No role: BSEThe BSE said the mutual fund concerned has reversed the transactions after discussions with the distributor.
- This development comes even as many retail investors have been booking profit on their direct investments in equity markets and moving the funds to mutual funds, particularly with NFOs flooding the market.
- Indeed, ICICI Flexi Cap made a record collection of ₹10,000 crore thanks to investors rushing in to take advantage of the bull run in equity markets.