Recovery of Matured Mutual Funds
When the investors don’t claim their mutual fund units or their dividends even after it is matured, it comes in the category of unclaimed MFs/dividends. Now as an investor you must be wondering how such things happen?
There are many reasons for this.
1. An investor’s address change.
2. Name mismatch in the bank account and AMC (Mutual Fund Company) records.
3. AMC does not clear the cheque in time after the due date.
4. Death of Unit Holder and Family Member not aware.
What happens to Unclaimed Money
As per SEBI rule, if the Mutual Funds units or its dividend are not claimed for 3 years then the AMC (Mutual Fund Company) can invest that money in the money market schemes deployed for the purpose of using unclaimed money and if it remains unclaimed for another 10 years then it is transferred in Senior Citizen Welfare Fund. If the same is not claimed for 25 years from Senior Citizen Welfare Fund then it belongs to Govt.
How to Claim Money
One can claim his/her due money from the AMC by requesting them with an application.
We at IEPFZone.com help aggrieved clients to recover their Mutual Fund unit and dividend with our expertise in handling such matter.