ICICI Prudential Mutual Fund has said it has reversed certain applications made in the new fund offer (NFO) of its Flexicap Fund following investor complaints.
Some investors complained that their NFO applications were made without their consent.
“Upon information gathered about a probable operational issue on the platform used by the select registered investment advisors (RIAs), we immediately reversed these transactions as per reversal instructions received, to our customer’s satisfaction, without any loss to the customers,” ICICI Prudential AMC Spokesperson said.
Groww was one of the platforms where the investors faced the issue. Groww said over 12,000 of its clients invested in the NFO of which 100 were switched from a debt fund on account of a combo feature introduced for this NFO.
“A similar situation was faced by customers on other platforms as well. No customer was impacted because of this. All these cases were reversed the moment Groww and the AMC got to know about this issue,” the company said in a statement.
Under the combo feature, investors first park their money in the money market or the liquid scheme of the fund house and at the last day of the NFO that money gets transferred to the equity fund.
“This is the practice across the industry as NFO period is for 10-15 days and investors get a chance to earn some money on their investments before it gets switched in the NFO,” said the official from the industry.
ICICI Prudential Flexicap Fund had collected around Rs 10,200 crore in its NFOs highest ever by any actively-managed equity scheme.
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