Unclaimed Money in Mutual Funds in India Rises by 153%
🔎 Overview of Unclaimed Mutual Funds Unclaimed money in Indian mutual funds has reached an all-time high of ₹3,811 crore . According to data from the Securities and Exchange Board of India (SEBI) , this includes ₹2,689 crore in unclaimed dividends (Income Distribution cum Capital Withdrawal) and ₹1,122 crore in unclaimed redemption payouts. Money usually becomes "unclaimed" when a payout check is not cashed, an electronic transfer fails due to an outdated or closed bank account, or the investor fails to complete mandatory Know Your Customer (KYC) updates. 💡 Where the Money Goes & How it Grows If your money is marked as unclaimed, it is never forfeited or lost . SEBI mandates strict guidelines on how fund houses must manage these assets: First 3 Years: The amount is parked in safe, low-risk liquid fund schemes . If you claim it within three years, you receive the initial principal amount plus the actual income earned from that liquid scheme. A...