![Groww mutual fund issue: What investors can do to safeguard their investments](https://img.etimg.com/thumb/msid-111422807,width-300,height-225,imgsize-5622,resizemode-75/groww-mutual-fund-issue-what-investors-can-do-to-safeguard-their-investments.jpg)
Singh commented, "The Resolution has happened and we have gotten our Refund/fund money back with the correct value so that's a good thing on the Groww team's part. (We have all the details around this)."
He further elaborated on the incident, stating, "Lots of people suggested that while investing we should have checked with Cams, Fund house, etc. While all those are very good suggestions and everyone should definitely do that, but the investment was not done recently, it was way back in 2020, back then,
A. We were relatively new to investment, and such a miss can happen.
B. You invest in multiple funds, it is not always so intuitive to go and check every time for every transaction
C. It seems an easy thing to do in hindsight now but very different when something like this happens. Only the person facing will understand. Everyone else will just say the ideal things.”
The most important question is- how can investors check their investments after making transactions?
“For those who have invested in various asset management companies through multiple platforms, tracking and monitoring all investments can be challenging. Fortunately, you can generate a Consolidated Account Statement (CAS) through CAMS or NSDL. This statement provides a comprehensive view of all your mutual fund investments, regardless of where or through which distributor you made them. Simply visit the NSDL-CAS or CAMS/KFIN-CAS website and subscribe to the monthly statement. Regularly checking the CAMS or NSDL CAS report is essential for monitoring your investments and ensuring transparency. This way, you stay informed about where your money is invested and how it is performing,” said Shruti Jain, CSO, Arihant Capital.
Singh expressed that this served as a valuable lesson, emphasizing the need for more proactive behavior regarding investments. “Was definitely a learning for us and everyone else how more proactive we need to be with our investments. And also the need still simplifications of this from government level and not from these brokers level,” he noted.
The question is how can an investor get a resolution if such incidents happen relating to the investments?
“If a user is unable to redeem their investments in mutual fund schemes through the intermediary they initially invested with, they can still complete the redemption process by directly submitting a request to the AMC or through CAMS/Kfin. To do this, they need to provide their folio number, scheme name, and redemption details. The redemption can be done through one of the following methods: Online redemption via the AMC website, Online redemption via the CAMS/Kfin app/portal, Assistance from another distributor,” said the analyst.
She also added, “In case they still face a problem, to resolve a complaint against a listed Mutual Fund, mutual fund distributor, or any other intermediary registered with SEBI, investors can use SEBI’s centralized web-based complaints redressal system called ‘SCORES’. This platform, known as the SEBI Complaints Redress System (SCORES), is designed to address investor grievances efficiently.”
Singh concluded by acknowledging the resolution of the issue, stating, “As I mentioned at the top the issue with the Groww team is sorted, the amount is refunded, and they will sort the issues they have in their systems. Thank you."
How can investors be protected against such incidents? “You can also use the investment management portal MFCentral by CAMS and Kfintech, which serves as a unified gateway for all mutual funds. Through MFCentral, you can view your portfolio across all mutual funds, update PAN details, and add or modify information across all your mutual fund folios. MFCentral is an industry initiative designed to minimize the need to visit multiple platforms to access your portfolio, statements, service requests, and investments. You can also individually monitor the investment statements sent via AMCs, but MF Central or CAS is way more efficient and gives you a complete picture of all your mutual fund investments,” said Jain.
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Subscribe to The Economic Times Prime and read the ET ePaper online.