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The Wealth Forum Advisor Confidence Survey has blamed mutual fund houses for the recent trouble in debt schemes, though the respondents expressed confidence in equity markets helping investors build wealth over a period of time.
The survey found that investors’ confidence in debt funds has fallen sharply after a spate of credit incidents leading to Independent Financial Advisors believe poor fund management is a lot more to blame for the debt debacle than the impact of market environment, credit cycle and refinance risk.
However, conviction in equity funds remains rock solid despite market turbulence, it said.
Among top 350 IFAs invited to participate, the eighth annual survey received response from 246 IFAs from 45 cities. The IFA who responded account for top five per cent in their cities.
The survey has found business confidence has been shaken by the cut in commission paid to distributors amid equity volatility and credit accidents.
A few respondents believe that mutual fund distribution has turned unviable while others are keen to find ways to engage with new age investors who are opting for a digital only mode for information, advice and execution on all personal finance matters, the survey found.
Three fund houses, ICICI Prudential AMC, HDFC and Frankline Templeton have grabbed the top spots across the four major AMC confidence segments – equity, debt, hybrids and prudent risk management.
ICICI Pru claimed top spot in three of the four major categories. It topped the table among mutual funds ability to deliver superior long term returns from equity funds for the sixth consecutive year followed by HDFC and Mirae mutual funds.
Frankline Templeton Mutual Fund topped the list to deliver healthy returns from debt funds, with lower volatility followed by ICICI Pru and IDFC mutual funds.
ICICI Pru and HDFC emerged as the safest pairs of hands in managing risks prudently and give confidence that “money is safe hands.
Frankline Templeton and Mirae Mutual Fund for long had the simplest and most consistent practices in commission, the survey revealed.
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