Despite rising folios, top 15 AMCs receive fewer complaints last fiscal

Increasing dependency on technology and maintaining high operational standards have helped the Rs.25 lakh crore MF industry reduce the number of complaints.

AMFI data on investors complaints show that the number of complaints filed against the top 15 fund houses (in terms of AUM) dropped by nearly one-third last fiscal. These fund houses received over 19,495 complaints in FY 18-19, as against 29,004 complaints in FY 2017-18.

Usually, with increase in the investor base, the number of complaints received by fund house also go up. The folio count of the top 15 fund houses rose by 14% to 7.51 crore in FY 18-19 as against 6.58 crore in the corresponding period last year. 

The data does not include Kotak Mahindra MF’s performance, since it is not available on AMFI’s website.

Industry experts said that the drop in complaints is due to increasing digitization in the industry, which is eliminating human errors. Digitization has been instrumental in rectifying errors regarding data correction in details of investor and non-updation of changes, such as address, PAN, bank details, nomination, etc.

Among the top 15 fund houses, SBI MF saw the highest decline in complaints from investors. The number of complaints dropped by nearly 69% to 2,353 in FY 18-19, from 7,576 in FY 17-18.  

ICICI Prudential MF saw the second highest decline in investors’ complaints. Investor complaint at the second largest MF dropped by 30% to 3,559 complaints in FY 2018-19 as against 3,559 complaints in the corresponding period a year ago.   

Only three fund houses – HDFC MF, Axis MF and IDFC MF - saw an increase in complaints from investors.

When it came to quickly resolving the complaints, all the fund houses did well. AMFI data shows that majority of the complaints were resolved within 30 days.

Number of investor complaints against the top 15 fund houses: