Explained: ₹3,811 cr unclaimed in MFs; here's how to check and claim money

Awareness among mutual fund investors has been rising, but unclaimed money lying with mutual fund companies has continued to increase. The pace of increase, however, has nearly halved compared with the previous year.

 

According to the annual report of the Securities and Exchange Board of India (Sebi), unclaimed money under mutual funds rose 10 per cent in FY26 to ₹3,811 crore.

 

Investors need not panic. The money can be traced and claimed through official platforms by following a few steps.

Unclaimed amount in mutual funds rises 10 per cent

The report showed that unclaimed money under mutual funds rose 10.4 per cent between March 31, 2025, and March 31, 2026, to ₹3,811 crore. A year earlier, the amount stood at ₹3,452 crore.

 

Manish Srivastava, executive director, Anand Rathi Wealth, said the increase was mainly due to unclaimed dividend amounts. These stood at ₹2,689 crore, up 15.7 per cent from the previous year. Unclaimed redemption proceeds stood at ₹1,122 crore, showing a marginal decline from last year.

Pace of increase slows

In FY24, ₹2,862 crore of investors’ money was lying unclaimed with mutual fund companies. Between FY24 and FY25, unclaimed mutual fund assets rose nearly 21 per cent to ₹3,452 crore. Between FY25 and FY26, the rate of increase slowed to around 10 per cent.

 

This means the size of unclaimed money is still growing, but its annual pace of growth has slowed. The key question is why investors’ money remains unclaimed and how they can recover it.

Why does mutual fund money remain unclaimed?

Unclaimed amounts in mutual funds are not caused only by investor negligence. Technical and procedural issues also contribute to the problem, experts said. Old records and outdated investor details can make the issue worse.

 

AK Nigam, director, BPN Fincap, said unclaimed amounts usually arise when money payable by an asset management company (AMC), such as redemption proceeds or income distribution cum capital withdrawal (IDCW), does not reach the investor’s bank account or remains unencashed.

 

Srivastava said a common reason is that investors change their mobile number, email address or bank account but do not update the new details with the mutual fund company or registrar and transfer agent (RTA). As a result, the payment fails and the amount remains unclaimed.

 

Old folios, physical-form investments and cases where the investor has died without registering a nominee can also add to the problem. The number of mutual fund folios has crossed 27.86 crore. Even a small proportion of old or inactive records can add up to a large unclaimed amount.

Reasons for unclaimed assets

Experts said there are several reasons why unclaimed money rose from ₹3,452 crore to ₹3,811 crore. These include operational issues as well as investor-related factors.

 

Many investors change their bank account, address or mobile number but do not update these details with the AMC or RTA. In such cases, redemption proceeds or cheques may not reach the correct account or may remain unencashed.

 

Physical cheques or demand drafts issued for dividends or redemptions can also expire if they are not deposited in time. The money then moves into the unclaimed pool.

 

Incomplete or outdated know your customer (KYC) details can also prevent fund houses from making direct payments into bank accounts. If the investor’s permanent account number (PAN) or identity documents are not verified, the amount may be kept in a separate unclaimed scheme.

 

If an investor dies without registering a nominee, the family or legal heirs may not even know about the investment. In such cases, the amount may remain unclaimed for years.

 

Many old investments made before digital records became common may still be paper-based. Investors may forget these investments or lose the documents.

 

The growing size of the mutual fund industry is another factor. India’s mutual fund assets under management (AUM) have been rising. Returns earned on unclaimed amounts parked in liquid or overnight schemes also get added over time, increasing the size of the unclaimed pool.

How to find old mutual fund investments

If an investor has an old mutual fund investment, a part of the amount may still be lying unclaimed. Experts said there are now several official channels to trace such investments.

 

Srivastava said unclaimed mutual funds can be identified through several methods. Investors can use Sebi’s Mutual Fund Investment Tracing and Retrieval Assistant (MITRA) platform, which is available on MF Central. They can also check directly on AMC websites, though each method has its own limitations.

 

Nigam said it is now easier than before for investors or their legal heirs to trace unclaimed mutual fund amounts. They can check through online platforms, RTAs and the websites of the relevant mutual fund companies. Key options include MF Central’s MITRA platform, RTA websites and AMC or Association of Mutual Funds in India (Amfi) portals.

 

MF Central and MITRA platform: MITRA has been developed jointly by CAMS and KFintech under Sebi’s guidance. It allows investors to trace unclaimed amounts and inactive folios across mutual fund companies. Inactive folios are those where no transaction has taken place for more than 10 years.

 

Investors can visit the MF Central website and choose the MITRA option. They can search using details such as PAN, date of birth, registered mobile number, name or address.

 

RTA websites: CAMS and KFintech provide online search facilities to track unclaimed dividend and redemption amounts. Investors can enter their PAN, date of birth and mobile number, and verify details through a one-time password (OTP) to check for unclaimed amounts.

 

Consolidated Account Statement: Investors can also check the monthly or quarterly Consolidated Account Statement (CAS) issued by National Securities Depository Ltd (NSDL), Central Depository Services (India) Ltd (CDSL), CAMS or KFintech. The CAS provides details of active folios and any unclaimed dividend or redemption amounts.

 

AMC and Amfi websites: Every mutual fund company’s website, as well as the Amfi portal, has an “Unclaimed Amounts” section. Investors can search using their PAN or folio number.

How to claim unclaimed money

Once an unclaimed mutual fund amount is identified, the investor needs to complete a few steps to recover the money. Nigam said this includes updating KYC and bank details, filling the required form and submitting supporting documents.

 

The first step is to confirm the unclaimed amount, including the AMC name, folio number and the scheme in which the money is lying.

 

If the bank account, mobile number or address has changed, the investor should update KYC details or submit a bank mandate change form before filing the claim.

 

The investor then needs to download and fill the Release of Unclaimed Amount Form or Common Transaction Slip from the relevant AMC or RTA website.

 

The signed form, along with required documents, must be submitted to the AMC’s Investor Service Centre (ISC) or the RTA branch of CAMS or KFintech. This can be done in person or through courier.

 

If the claim is made within three years, the investor gets the original unclaimed amount along with the income or interest earned from the liquid or overnight scheme in which the money was parked. If the claim is made after three years, the investor receives the original amount along with income earned up to the end of the third year. Earnings after the third year are transferred to an investor education fund in line with Sebi rules.

 

After document verification, the amount is credited directly to the investor’s bank account.

Documents required for claim

For the original investor, the key documents include a duly filled and signed Release of Unclaimed Amount Form, self-attested copies of PAN and Aadhaar, passport or voter identity card, and bank proof.

 

Bank proof is mandatory. The investor must provide an original cancelled cheque carrying the investor’s name and bank account number, or a copy of a bank statement or passbook not older than three months, verified by the bank manager.

 

The investor must also provide proof that KYC has been completed.

 

In case of the investor’s death, the nominee or legal heir has to submit a transmission request form, such as Form T2 or T3, along with the original or notarised copy of the death certificate.

 

The claimant must also provide self-attested copies of PAN, KYC confirmation and bank proof such as a cancelled cheque.

 

If no nominee is registered, additional documents may be required depending on the claim amount. These may include an indemnity bond, affidavit, legal heir certificate or probate of will, in line with Sebi rules.

Where to complain if the money is not received

According to the frequently asked questions section on the Amfi website, if the investor does not receive the money within seven working days, or is not told why the claim has been rejected, a complaint can be filed with the concerned AMC, RTA office or AMC investor service centre.

 

The address and email ID of the AMC are available in the “Contact Us” section of the AMC website.

 

If the AMC or RTA does not resolve the complaint within the prescribed time, or if the investor is not satisfied with the response, the complaint can be filed on Sebi’s SCORES portal.