Despite improved investor awareness, unclaimed mutual fund dividends and redemption proceeds in India continue to rise, highlighting ongoing record-keeping challenges and the importance of proactive record management.
Unclaimed money in mutual funds in India has continued to rise, even as investor awareness improves, according to the Securities and Exchange Board of India’s latest annual report. The amount stood at ₹3,811 crore at the end of FY26, up 10.4% from ₹3,452 crore a year earlier, though the rate of increase was slower than in the previous year. Reuters-style coverage of the figures by the Economic Times said the rise was driven mainly by unpaid dividends, while redemption proceeds edged down slightly.
The bulk of the increase came from dividend payouts that were never collected. Anand Rathi Wealth executive director Manish Srivastava said unclaimed dividend amounts climbed to ₹2,689 crore in FY26, while unclaimed redemption proceeds were ₹1,122 crore. Industry sources say the problem is not just about investor oversight; it also reflects old records, inactive folios and payment failures linked to outdated contact or bank details.
Mutual fund houses and registrars say unclaimed money often builds up when investors change bank accounts, phone numbers or email addresses but do not update their records. In other cases, cheques expire before they are deposited, know-your-customer details are incomplete or investments were made in paper form years ago and then forgotten. HDFC Mutual Fund’s own guidance says failed payouts, non-compliance with KYC requirements and unencashed cheques are among the most common causes.
There are several official ways to trace forgotten holdings. The Mutual Fund Investment Tracing and Retrieval Assistant, or MITRA, created under Sebi’s guidance and available through MF Central, is designed to help investors locate inactive or unclaimed folios across fund houses. Investors can also search through registrar and transfer agent websites, their consolidated account statements, or the unclaimed amount sections on asset management company and Amfi portals.
Once an amount is found, the claimant must confirm the folio and scheme details, update KYC or bank information if needed, and submit the relevant release form with supporting documents. These generally include identity proof, bank proof and, where applicable, transmission papers for legal heirs or nominees. If a claim is made within three years, the investor receives the original sum plus income earned on the parked money; after three years, later earnings are transferred to the investor education fund, in line with Sebi rules.
If the amount is not paid within seven working days, or if the rejection is not properly explained, the investor can complain to the AMC, its registrar or investor service centre. Should that fail, Sebi’s SCORES portal is the next formal step. Mint and other personal finance guides note that the same basic approach applies across unclaimed financial assets: keep records current, check statements regularly and use official portals before assuming the money is lost.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
