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Monday, June 05, 2017

Investors’ Complaints Against Mutual Funds up 40% to 17,569 in 2016-17..!


By on Monday, June 05, 2017

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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