Investors’ Complaints Against Mutual Funds up 40% to
17,569 in 2016-17..!
Top mutual fund houses received nearly 17,569 complaints from investors in
2016-17, a surge of 40 % from the preceding fiscal, mainly due to increase in
folio numbers.
These complaints pertain to data corrections in investor details and
non-updation of changes about address, PAN (Permanent Account Number) details
and nomination, among others.
Industry experts believe that large number of complaints were received due
to increase in folio base or / investor accounts.
Besides, illegible data provided by investors as well as errors made by
investors while filling up application forms helped in raising the number of
grievances, they added.
As per Association of Mutual Funds of India (AMFI) data, the top 5 mutual
fund houses - ICICI Prudential mutual fund, HDFC mutual fund, Reliancemutual
fund, Birla Sunlife mutual fund and SBI mutual fund — together received 17,569
investor grievances last fiscal compared with 12,579 complaints in 2015-16.
The folios - numbers designated to individual investor accounts, though one
investor can have multiple folios grew
to 2.72 crore from 2.23 crore during the same period.
Among the top fund houses, SBI mutual fund saw the biggest rise in investor
grievances last fiscal, with complaints growing 4 fold to 6,924.
It was followed by Birla Sunlife mutual fund, which saw complaints rising
by 51 % to 1,831 and ICICI Prudential mutual fund witnessed an uptick of 2 % to
4,648.
However, HDFC mutual fund witnessed 24 % decline in the number of
complaints at 2,857, while Reliance mutual fund saw a drop of 10 % to 1,309.
“Customer service and experience is the most important thing for us and we
achieve this by strengthening processes and technological innovation,” Reliance
mutual fund CEO Mr. Sundeep Sikka said on reduction in number of complaints.
“Hence a better investor experience at our 150 plus branches, web and
mobile app platform led to smooth resolution to investor queries,” he said.
Markets regulator SEBI first took note of the rising investor complaints in
mutual funds in 2011 and hauled up fund houses for not taking serious note of
the grievances.
12 Type of Complaints
1. Non receipt of Dividend
on Units
2. Interest on delayed
payment of Dividend
3. Non receipt of
Redemption Proceeds
4. Interest on delayed
payment of Redemption
5. Non receipt of Statement
of Account / Unit Certificate
6. Discrepancy in Statement
of Account
7. Data corrections in
Investor details
8. Non receipt of Annual
Report / Abridged Summary
9. Wrong switch between
Schemes
10. Unauthorized switch
between Schemes
11. Wrong or excess charges
/ load
12. Non updation of changes
viz. address, PAN, bank details, nomination, etc
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