Summary of this article
Rs 2,689 crore in mutual fund dividends remains unclaimed.
Investors can track these funds using the MITRA platform.
Investors can use an Unclaimed Amount Form to retrieve them.
Mutual funds provide an easy and efficient way of investing money and growing wealth. However, the Securities and Exchange Board of India’s (Sebi) annual report for FY26 shows that a significant part of the wealth generated through mutual funds continues to lie unclaimed.
According to the Sebi’s Annual Report for FY26 the unclaimed dividend amount in mutual funds grew by 15.7 per cent, reaching Rs 2,689 crore in 2025-26 from Rs 2,324 crore in 2024-25. Additionally, the unclaimed redemption amount of mutual funds stood at Rs 1,122 crore at the end of 2025-26.
What Are Unclaimed Dividends
Mutual fund dividends or Income Distribution cum Capital Withdrawal (IDCW) are payout amounts released by fund houses for unitholders. These sums of money sometimes go unclaimed or unacknowledged by the unitholder or shareholder.
Typically these dividends remain uncashed when investors change their residential address or switch banks and don’t update their details. Sometimes the dividends may also remain unpaid if an investor loses track of their investments over the years or due to the death of a shareholder without proper nomination, leading to the dividends remaining unnoticed by their legal heirs.
What Happens To Unclaimed Dividends
When a company declares a dividend and it remains unpaid or unclaimed for 30 days, the law mandates the company to transfer the money to a special Unpaid Dividend Account. If the funds remain in this account for seven consecutive years, they do not vanish but, the Companies Act of 2013 requires the company to transfer these dormant dividends, along with the corresponding equity shares, to the Investor Education and Protection Fund (IEPF).
However, the rules differ for mutual fund dividends (IDCW). Instead of transferring the money to the IEPF, Sebi mandates that AMCs use these unclaimed amounts to invest into specific liquid, overnight, or call money market mutual fund schemes. Thus, if the money is claimed within three years, the investor receives the original amount plus the interest earned on it. However, if the claim is made after three years, the investor only receives the principal amount plus the interest earned up to the end of the third year. Any interest generated after that three-year mark is diverted by the fund house toward investor education initiatives.
How To Check if You Have Unclaimed Dividends
Mutual fund investors can check for unclaimed amounts through the MITRA (Mutual Fund Investment Tracing and Retrieval Assistant) which is available on the MF Central website.
Investors can check the status of their unclaimed dividends by typing in details linked to their account such as PAN and date of birth. Investors can use the MITRA platform to search for inactive or unclaimed folios across the entire mutual fund industry. Alternatively, investors can also search for unclaimed dividends directly on the websites of their respective Asset Management Companies (AMCs) or through Registrar and Transfer Agents (RTAs) like CAMS or KFintech.
How To Claim Unclaimed Dividends
Unlike dividends paid on share holdings, mutual fund dividends do not go to the IEPF. However investors can retrieve these funds, by downloading and filling an "Unclaimed Amount Form" from their AMC's website or their RTA (like CAMS or KFintech).
After filling out and signing the physical form, investors need to submit it to the AMC or RTA office along with supporting documents. The supporting documents usually include valid identity proof (PAN/Aadhaar), updated KYC details, and a cancelled cheque. Once the RTA or AMC verifies the submission, the unclaimed amount, along with applicable interest, is credited to the investor's registered bank account.
Why You Should Claim Your Dividends On Time
Claiming dividends on time is important for making the most of your investments. While the regulator has taken several steps to ease the process of retrieving dividends, investors must note that it is better to keep track of investments and receive dividends on time so that they can use the money efficiently.
