MF: Most complaints on Investor details, Address, PAN, Bank Details, Nomination


 Investor Complaints against Drop by 40%

Mutual funds  (MFs) received close to about 40,000 complaints from investors in 2013-14, down 40% from the preceding financial year.

These complaints pertain to data corrections in investor details and non-updation of changes about address, PAN (Permanent Account Number), bank details and nomination, among others.

As per data put up on the AMFI website, www.amfi.com the industry received about 40,000 investor grievances in 2013-14 compared to 66,760 complaints in 2012-13.

According to MF industry experts, the complaint redressal mechanism has become efficient at most asset management companies with the grievances get resolved within the prescribed turnaround time.

The top 5 fund houses such as HDFC Mutual Fund, ICICI Prudential MF, Reliance MF and UTI Mutual have witnessed complaints falling by 48% during the past fiscal year.

Reliance MF saw the largest drop in investor grievances. They plunged 75% to 3,453 in 2013-14. It was followed by ICICI Prudential MF, which which saw complaints tumbling to 4,353, a decrease of 67% during the same period.

Market requlator SEBI first took note of rising investor complaints in MFs in 2011 and hauled up fund houses for not taking serious note of these grievances.

In absolute terms, the highest number of investor complaints were recorded against Birla Sunlife MF (6,056) in 2013-14 followed by HDFC MF (6,023).

Among the top mutual fund houses, UTI MF saw a climb in its investor grievances to 4,345 from 3,372. Besides, complaints lodged against IDFC surged to 1,644 from 988.

Mf Industry experts believe that large number of complaints are received due to the illegible data provided by investors as well as errors made by investors while filling up application forms.



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