The rise in SIPs in mutual funds has been well documented and going by the data released by AMFI in May, inflows in equity funds including ELSS witnessed net inflows of Rs 10,739 crore. Understandably, some investors are vary about this rising inflows into equities through mutual funds, but the other problem is about the rise in complaints posted against mutual funds by investors. According to data from SEBI, the mutual fund industry added 77 lakh folios in 2016-17 and for the same period the number of complaints lodged against the top ten AMCs has shot up to 23,000.
Most of these complaints are related to data correction in investor details, such as investors not updating their bank details or furnishing PAN or nomination information. SBI MF witnessed the maximum rise in investor complaints, with the number of complaints growing at 338 per cent to touch 6,924 complaints in numbers and ICICI Prudential MF followed SBI MF with 4,648 complaints.
For the same period, Franklin Templeton MF saw a 53 per cent drop in investor grievances with 2,626 complaints, compared to 5,529 in 2015-16. For investors, the upside is that most of their complaints were resolved within 30 days of them being posted to the AMC. The prompt and timely dispute resolution should encourage investors about the seriousness with which AMCs work towards resolving investor complaints.
