MF investor grievances remain minuscule, underscoring industry's efforts in investor protection: AMFI
Mumbai: The number of complaints lodged by investors and distributors for the half-year ending September 30, 2023, stood at a mere 485 complaints, the Association of Mutual Funds in India (AMFI) said in a report.
Of these, 428 complaints were received directly from investors/distributors and 57 complaints were received through SEBI.
For the same period, the net AUM has increased from 41,61,821.62 crores in April 2023 to 46,57,755.22 crores at the end of September 2023 driven by favourable conditions, including a strong equity market, steady interest rates, and robust economic growth, said the report.
While the industry is growing at a fast clip, the data suggests that complaints against the MF industry are low, it noted.
The number of complaints has gone down from last year when the total number of complaints received during the 1st half of the FY 2022-23 were 619 of which 494 complaints were received directly from investors/ distributors and 125 complaints were received through SEBI.
These consistently low complaint numbers highlight the mutual fund industry's continuous efforts to elevate service quality and transparency, building a stronger foundation of trust among investors.
AMFI received complaints from investors as well as distributors directly and through the regulator SEBI.
These complaints are broadly classified in to routine and serious complaints based on the type and nature of complaints.
The Indian Mutual Fund industry stands out in the financial market with its low number of customer complaints, reflecting its transparent and disclosure-focused reporting practices.
Everyday grievances typically revolve around issues such as missing dividend payouts, absent account statements, commission delays, and outdated records, the report said.
On the other hand, critical complaints encompass more severe infractions like application form manipulation, unethical marketing practices, fund irregularities, and significant service lapses by distributors.
When it comes to addressing these concerns, standard complaints are promptly directed to the respective mutual fund companies or distributors for resolution, with guidance from AMFI.
However, in cases deemed serious, explanations are demanded within a specific timeframe.
Following this, matters are escalated to AMFI’s ARN committee, which evaluates and advises on suitable actions, ranging from commission suspension to the potential termination of ARN licenses.
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