The mutual funds industry body Association of Mutual Funds in India (Amfi) announced on Wednesday that the number of complaints received from investors and distributors for the half-year that ended on September 30, 2023, stood at 485, marking a 21 per cent decrease from the corresponding period in the previous year. The consistently low complaint numbers underscore the mutual fund industry’s ongoing efforts to enhance service quality and transparency.
During the first half of the fiscal year 2023-24, Amfi reported 485 complaints received, significantly lower than the 619 complaints received during the same period in the preceding fiscal year, as stated in a statement.
During the same period, the net assets under management surged from Rs 41.62 lakh crore in April 2023 to Rs 46.58 lakh crore by the end of September 2023, supported by a resilient equity market, stable interest rates, and vigorous economic growth.
“While the industry is growing at a fast clip, the data suggests that complaints against the MF industry are low,” the industry body said.
Out of the 485 complaints, 428 were directly received from investors or distributors, while 57 grievances were received via the Securities and Exchange Board of India (SEBI). These complaints are categorised into routine and serious complaints, depending on their type and nature.
Everyday grievances typically include missing dividend payouts, absent account statements, delays in commissions, and outdated records. Conversely, critical complaints involve more severe infractions such as manipulation of application forms, unethical marketing practices, fund irregularities, and significant service lapses by distributors.
To address these concerns, standard complaints are promptly forwarded to the respective mutual fund companies or distributors for resolution, with guidance from Amfi. However, explanations are requested within a specific timeframe in cases deemed serious.
Subsequently, matters are escalated to Amfi’s ARN committee, which assesses and advises on appropriate actions, ranging from commission suspension to the potential termination of ARN licenses.
The mutual fund industry body highlighted that customer grievances in the mutual fund sector are comparatively minimal compared to other industries within BFSI.
“Remaining at the bottom of the table for customer complaints is a testament to the mutual fund industry’s unwavering commitment to investor protection and satisfaction. AMFI remains dedicated to fostering a transparent and trustworthy environment for mutual fund investors,” said Venkat Chalasani, Chief Executive at Amfi.
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