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Customer grievances in the mutual fund industry are very few as compared to other sectors within BFSI, says AMFI.
The trade body says that the MF industry received a total of 485 complaints as against 619 complaints in the corresponding period last year. Of these, 428 complaints were received directly from investors and distributors and 57 complaints through SEBI.
During this period, the AUM grew to Rs.47 lakh crore in September 2023 from Rs.42 lakh crore in April 2023.
In a press release, Venkat Chalasani, Chief Executive, AMFI, "We are pleased to share that the grievance against the industry and its distributors continues to remain miniscule. 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."
AMFI says that these grievances typically revolve around issues such as missing dividend payouts, absent account statements, commission delays and outdated records. 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, said AMFI.
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, added AMFI.
