Investors flood mutual funds with 3.94 lakh complaints

Its raining complaints from mutual fund investors. Ever since market regulator...

Its raining complaints from mutual fund investors. Ever since market regulator,Securities and Exchange Board of India (Sebi),had asked all the fund houses in May this year to disclose investor grievances on Amfi website,over 3.94 lakh complaints were found to have been received by the MF industry in 2009-10 alone. This essentially means that one out of every eight MF investors in the country had some complaints or the other during the period. While the most common grouse is on non-receipt of dividends and redemption proceeds,failure of fund houses to update personal details has also annoyed investors.

Fund houses like UTI MF,Birla Sun Life MF,ICICI Pru MF,Canara Robeco and Franklin Templeton received the largest number of complaints. Of course,if one were to look at complaint received per investor,Birla Sun life and Canara Robeco top the chart.

However,to the relief of investors,Association of Mutual funds in India (Affi) data shows that despite such high number of investor grievances,fund houses managed to resolve the problems within the 30 days of receipt of the complaint.

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In total,the 39 fund houses received over 3.94 lakh complaints in 2009-10,of which approximately 3.79 lakh crore (96%) were resolved by them within 30 days of receiving the complaint,as per Amfi data.

UTI MF received highest number of complaints at 99,300 for the year followed by Birla Sun Life MF and ICICI Pru MF who received 95,400 and 57,600 complaints,respectively. Among large-sized fund houses,DSP Black Rock (731),HDFC MF (7,673),SBI (8,174) and Reliance MF (10,234) received relatively lesser complaints compared to their assets under management. Sanjay Sinha,CEO of L&T Mutual Fund,says,There has been quite a few complaints received on non-receipt of statement of account. However we feel that,as a percentage of total number of applications received the number will be a fraction of a percentage. L&T MF received 377 complaints for the year.

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