Investors are generally satisfied with their mutual fund investments. Additionally, investors using the services of distributors are more satisfied with their fund investments, than those not using distributors.
These were amongst several significant findings from an Investor survey conducted by Financial Intermediaries Association of India (FIAI) targeting mutual fund investors. This unique survey was conducted across the entire geography of the country and covered all segment of individual clients - retail as well as HNI - across all age groups. Responses were received online through FIAI's website, as well as through paper-based responses provided by investors to FIAI member organizations.
The key objective of the survey was to explore investor behaviour, preferences and satisfaction with mutual fund investments as well as the role of distributors in helping investors. The survey also explored investors' expectations from the regulator to safeguard their interests.
Investors are generally satisfied with their mutual fund investments
86% of the customers are either satisfied or neutral about their investments in mutual funds. Only 14% expressed low satisfaction with their fund investments
Among specific scheme types, Liquid schemes had the highest level of satisfied customers
67% of investors in Liquid Schemes were highly satisfied, followed by 59% of investors in Diversified Equity Funds
Monthly Income Plan (MIP) and Sectoral Equity funds had the least satisfaction, with about 40% of investors being unhappy with performance
Investors using the services of a Distributor/Advisor are more satisfied with their mutual fund investments than those investors who do not use a distributor/adviser
48% of the customers having distributors/advisors expressed high satisfaction, as opposed to only 41% of the customers without distributors/advisors. Investors using distributors/advisors are therefore 17% more satisfied with their fund performance than those not using a distributor/advisor.
15% of investors not using distributors are not happy with their fund performance, as compared to 12% who use distributors
A majority of investors expressed satisfaction with their distributors
62% of customers surveyed expressed satisfaction with their distributor/advisors services
Top 2 qualities investors look for in a distributor are:
Prompt customer Service
Sound market /product knowledge
Top 3 areas investors would like to see Regulatory intervention in: