Unclaimed dividends surged 15.7% to ₹2,689 crore while redemptions edged lower. SEBI's MITRA tool helps investors trace lost MF investments.
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Unclaimed mutual fund assets in India rose to ₹3,811 crore at the end of FY26, up 10.4% from ₹3,452 crore a year earlier, according to the Securities and Exchange Board of India's annual report.
The increase was driven by a 15.7% jump in unclaimed dividends, which reached ₹2,689 crore. Unclaimed redemption amounts slipped to ₹1,122 crore from ₹1,128 crore in FY25, the regulator said.
Payments become unclaimed when the investor's bank account has changed or been closed, bank details are incomplete, a cheque remains uncashed, or the address on record is outdated. KYC non-compliance also prevents payouts.
Investors can check for unclaimed money on their mutual fund house website or through the Registrar and Transfer Agent. The MF Central portal and the Consolidated Account Statement also show unpaid amounts. SEBI's MITRA facility, short for Mutual Fund Investment Tracing and Retrieval Assistant, helps trace inactive or unclaimed investments where no transaction has occurred in the last 10 years.
Once a match is found, the investor downloads a claim form from the asset management company's website, signs it, and submits it to the AMC or RTA. The RTA verifies the records and signature. If everything is in order, the claim is processed and payment made from the Unclaimed Dividend and Redemption Scheme, along with any applicable appreciation. Payment typically takes two to five days after processing.
The claim is treated like a redemption, with the NAV based on the date and time the claim form is received. If the investor does not receive payment or a rejection notice within seven working days, they can contact the AMC or RTA. Unresolved complaints can be escalated through SEBI's SCORES platform.
Mutual funds can invest unclaimed amounts in the call money market, money-market instruments, or a separate plan known as UDRS. The returns from these investments, called appreciation, are credited to the investor for three years from the date the units are created. If the money is claimed within that period, the investor receives the applicable UDRS NAV plus appreciation. Claims after three years are settled at the value at the end of the three-year window, with any subsequent appreciation going to the Investor Education Fund.
SEBI's report underscores the importance of keeping PAN, KYC, address, and bank account details current with the AMC or RTA. Investors who do not receive an electronic redemption payment within three working days, or a cheque within five to seven working days, should contact their fund house or distributor.
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