Unclaimed Mutual Fund Dividends Hit Rs 2,689 Cr
By Business Desk
Unclaimed mutual fund dividends surged 15.7% to Rs 2,689 crore in FY26. SEBI introduces new measures to address this growing investor challenge.
Unclaimed dividends within mutual funds witnessed a substantial increase of 15.7 percent, reaching Rs 2,689 crore by the close of fiscal year 2025-26. This figure, detailed in the Securities and Exchange Board of India’s (SEBI) Annual Report 2025-26, highlights a growing challenge in investor asset management.
Understanding the Rise in Unclaimed Funds
The reported amount marks an increase of Rs 365 crore from the Rs 2,324 crore recorded at the end of the previous fiscal year, 2024-25. While dividends surged, unclaimed redemption proceeds saw a marginal decline.
- Unclaimed dividends (FY26): Rs 2,689 crore (up 15.7%)
- Unclaimed dividends (FY25): Rs 2,324 crore
- Unclaimed redemption proceeds (FY26): Rs 1,122 crore (down 0.5%)
- Unclaimed redemption proceeds (FY25): Rs 1,128 crore
Cumulatively, the total unclaimed dividend and redemption amounts in mutual funds reached Rs 3,811 crore as of March 31, 2026. This represents a rise from Rs 3,452 crore at the end of the preceding financial year, indicating a broader issue of investor funds remaining inaccessible.
SEBI’s Initiatives for Investor Access
In response to these increasing figures, SEBI has rolled out several measures aimed at simplifying the process for investors and their nominees to reclaim funds. These initiatives focus on leveraging technology and streamlining communication.
- DigiLocker Integration: Facilitates a single point of access for investors to view their demat and mutual fund information.
- Centralized Death Reporting: Allows nominees to report an investor’s death once to a KYC Registration Agency, ensuring updates across all financial intermediaries.
Furthermore, SEBI has collaborated with the Investor Education and Protection Fund Authority (IEPFA) to launch the