Unclaimed Mutual Fund Dividends Hit Rs 2,689 Crore in India

Unclaimed mutual fund dividends in India surged by 15.7 percent to Rs 2,689 crore by the close of the 2025-26 financial year, according to the Securities and Exchange Board of India’s (SEBI) Annual Report 2025-26. This significant rise highlights a growing challenge in investor asset management, marking an increase of Rs 365 crore from the previous year.

Key figures from the report illustrate the scale of unclaimed funds:

• Unclaimed mutual fund dividends reached Rs 2,689 crore by the end of 2025-26.
• This is an increase from Rs 2,324 crore recorded at the end of 2024-25.
• Unclaimed redemption amounts saw a marginal decline of 0.5 percent, settling at Rs 1,122 crore from Rs 1,128 crore a year prior.
• Cumulatively, the total unclaimed dividend and redemption amounts in mutual funds reached Rs 3,811 crore as of March 31, 2026, up from Rs 3,452 crore in the preceding financial year.

The substantial increase in unclaimed dividends, alongside a marginal dip in redemption amounts, pushed the total dormant mutual fund assets to Rs 3,811 crore. This cumulative figure reflects a persistent issue for investors and regulators alike, demanding focused intervention.

SEBI’s Response to Rising Unclaimed Assets

This upward trend in unclaimed assets has prompted SEBI to intensify its regulatory efforts aimed at reducing the volume of these dormant funds. The market regulator seeks to simplify how investors and their nominees can access their rightful holdings.

SEBI has introduced several key initiatives to streamline the reclamation process:

• DigiLocker integration: This allows investors to access their demat and mutual fund information from a single, centralized platform.
• Centralized mechanism: Nominees can report an investor’s death once with a KYC Registration Agency, ensuring the information is updated across various intermediaries.
• ‘Niveshak Shivir‘ initiative: Launched in collaboration with the Investor Education and Protection Fund Authority (IEPFA), this program raises awareness about unclaimed shares and dividends held with listed companies.
• Assistance provided: These initiatives offer help with filing Form IEPF-5, dematerialization of securities, and updating KYC and nomination details.

During the 2025-26 financial year, six ‘Niveshak Shivirs’ were organized across various cities to engage investors directly. Additionally, dedicated seva kendras became operational in six states, providing on-ground support for these reclamation efforts.

It is crucial to understand that the Rs 2,689 crore figure specifically represents unclaimed mutual fund dividends. This does not encompass the total unclaimed dividends from all listed companies, indicating a focused challenge within the mutual fund sector that SEBI is actively addressing.