Unclaimed Mutual Fund Folio: Have you forgotten about investing in a mutual fund years ago? Are you not able to find the folio number of your mutual fund investment? So soon your problem is going to be solved. The stock market regulator SEBI (Securities and Exchange Board of India) is going to launch a service platform called Mutual Fund Investment Tracing and Retrieval Assistant (MITRA) to trace inactive and unclaimed mutual fund folios.  

MITRA will track mutual fund investments

SEBI has issued a draft circular regarding the service platform to be launched under the name Mutual Fund Investment Tracing and Retrieval Assistant (MITRA) to trace inactive and unclaimed mutual fund folios. Comments or suggestions can be given on this draft circular till 7 January 2025. SEBI said, investments made in mutual fund schemes with open-ended growth option will continue to be held until the investor or his nominee or legal heir approaches the asset management company for redemption, transfer or transmission. 

According to SEBI, it is also possible that this folio number does not appear in the consolidated account statement of the unit holder due to lack of PAN, email ID or valid address. In such a case, the inactivity of the mutual fund folio may be due to the investor losing track of his investment, death of the investor or other reasons. Such inactive folios may also be victims of fraudulent redemption.  

Database of inactive, unclaimed mutual fund folios will be released 

After investing for a few years, mutual fund investors are unable to keep track of their investments, as the investment may have been made in physical form with minimum KYC details. In such a situation, the Securities and Exchange Board of India (SEBI) has issued a draft circular to seek comments and suggestions from the people before launching this service platform. SEBI said, to overcome this problem of mutual fund investors, RTA has developed a platform in which a database of inactive and unclaimed mutual fund folios will be released at the industry level, in which investors will be able to search for folios in their name. SEBI says that this will empower investors. 

Investors will be able to track their mutual fund investments 

According to SEBI, investors will be able to search for investments in this database that they have forgotten. Or they will be able to claim investments made by a person for which they are the rightful heir. With this step, investors will be able to do KYC under the existing rules. This will help in reducing the number of non-KYC compliant folios. This platform database will help in reducing the number of unclaimed mutual fund folios. According to SEBI, this step will help in creating a transparent financial ecosystem. Along with this, it will prove to be a reliable medium for investors to find inactive mutual fund investments. It will also include measures against the risk of fraud.