Accessibility of Fund AMCs - lets look at the numbers

While fund houses have been quick to shift the blame regarding high distribution expenses over to distributors/agents on the pretext that they have a deeper penetration which cannot be fought with, let us also look at what fund houses have done to allow investors to access them directly.

Here is a list of direct contact numbers for the AMCs (obtained from their websites):

ABN AMRO : 91-22-6656 3838
Benchmark : 1800-22-5079 (toll-free)
Birla Sun Life : 1800-22-7000 (toll-free)
BOB : 1-901-334034 - link to Karvy
CanBank : Multiple Contact Points
DBS Chola : 1-800-22-2300 (toll-free)
Deutsche : Multiple Contact Points
DSP Merrill Lynch : 1-800-345-4499 (toll-free)
................... - link to CAMS
Escorts : Multiple Contact Points
Fidelity : 1800-180-800 (toll-free)
Franklin Templeton : 1800-425-4255
HDFC : Multiple Contact Points
HSBC : Multiple Contact Points
ING Vysya : Multiple Contact Points
JM Financial : Multiple Contact Points
Kotak Mahindra : 1800-22-2626
LIC : 22842521, 22851661/63 (no STD code)
Lotus India : Multiple Contact Points
Morgan Stanley : 91 22 2209 6600
Principal : 1 800 22 5600 (toll-free)
........... - at select locations
Prudential ICICI : Multiple Contact Points
Quantum : 1800-22-3863 (toll-free)
Reliance : 30301111 (Reliance phones);
.......... 022 30301111 (others)
Sahara : Multiple Contact Points
SBI : 1800-22-3040 (toll-free)
StanChart : "Contact Us" Link doesn't work
Sundaram BNP Paribas : No "Contact Us" Link avalable; Facility to have them call you
Tata : Multiple Contact Points
Taurus : Multiple Contact Points
UTI : Multiple Contact Points;
..... 1-800-22-1230 (perhaps only for GoldETF)

Note: This info is as on 21-Mar-07 & may be subject to change.

A few interesting observations come out of this basic study.
a. PruICICI, claiming to be No. 1, has no toll-free number for its investors.
b. Reliance, again claiming to be No. 1, has differential treatment for Reliance phone subscribers (paying local charges) v/s others (paying STD charges)
c. StanChart hasn't even bothered to check the "Contact Us" page link - guess they don't want to be disturbed while packing their bags
d. Principal has a special toll-free numbers for investors in specific locations - guess they do not want customers from other than the select locations
e. UTI has a toll-free number that shows up only on GoldETF ads - it is not clear whether other investors should be using that or not
f. BoB & DSPML have conveniently shifted the service part to their RTAs (Karvy & CAMS, respectively). However, BoB is explicit about it, while in case of DSPML, you can only find out after you call them up.
g. LIC has mentioned the contact numbers without STD code. Either they have this number available at all locations (I think not) or they want only investors from Mumbai to contact them (I hope not) or it is sheer laziness and indifference towards this basic customer service requirement (most likely).
h. Kotak Mahindra & Franklin Templeton have single contact numbers that look like toll-free (starting with 1-800...), but it is not mentioned clearly. In case of Franklin Templeton, a detailed reading of the fine print in their KIM indicates that "local charges apply".

A few pleasant surprises to show you that all is not lost.
a. SBI has a toll-free number - I'm sure no one would have expected such attention to customer service from SBI.
b. Quantum, which was born yesterday (technically a year ago), and has the lowest AUM, has a toll-free number (since inception).
c. Sundaram BNP Paribas, which does not have a contact link, but does have a facility to have them contact you.

Considering that the Fund houses have done hardly anything to make themselves accessible to the investor population, I believe the high distribution costs should be borne by them (as an acknowledgement of their failure) instead of passing it on to customers and blaming the distributor cartel.

At the very least, SEBI or AMFI should mandate toll-free or single access number for all Mutual Funds and make this a standard disclosure as part of Investor service section of the Offer Documents & KIM. After all, once the distributor "changes his/her cell-number" after completing the sale, when you have to contact the fund house for any service need, the least the investor deserves is a single access number (preferable toll-free). I rest my case.