Mutual Fund Complaints Drop in H1 FY24: Amfi

New Delhi, Feb 14 (PTI) Mutual funds industry body Amfi on Wednesday said that the number of complaints received from investors and distributors was 485 for the half-year ended September 30, 2023, a decline of 21 per cent from the year-ago period.

The consistently low complaint numbers highlight the mutual fund industry's continuous efforts to elevate service quality and transparency.

In the first half of the fiscal year 2023-24, a total of 485 complaints were received, which was way lower than 619 complaints received in the same period of preceding fiscal, Association of Mutual Funds in India (Amfi) said in a statement.

For the same period, the net assets under management increased from Rs 41.62 lakh crore in April 2023 to Rs 46.58 lakh crore at the end of September 2023 driven by a strong equity market, steady interest rates, and robust 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 noted.

Of these 485 complaints, 428 were received directly from investors or distributors and 57 grievances were received via Sebi. These complaints are broadly classified into routine and serious complaints based on the type and nature of complaints.

Everyday grievances typically revolve around issues such as missing dividend payouts, absent account statements, commission delays, and outdated records. On the other hand, critical complaints comprise 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 time-frame.

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.

The mutual fund industry body said that customer grievances in the mutual fund industry are very few as compared to other sectors 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," Venkat Chalasani, Chief Executive at Amfi, said.