Many investors are unable to keep their investment tracks in mutual funds after a few years. This problem is especially with such investors who have less information about themselves in KYC and have invested in physical form. Such an investment doctor becomes, because investors forget to tell their family members about them. The possibility of fraud increases with this investment.
The investment in any open-ended growth scheme of mutual funds remains until the investor, nominee or legal successor does not go to the concerned AMC and make redemption, transfer or transmission. PAN, not having an email ID or valid address, do not appear in the consolidated account statement of the Folio Unitolders. There is no activity in mutual fund folios due to not keeping the track of his investment or his death. The possibility of wrong redemption of such inactive folios increases.
There is good news for such investors. SEBI has introduced mutual fund investing and retrieved Assistant (MITRA) on 12 February 2025. It is a platform that is designed to detect inactive and uncured mutual funds folio. This platform allows maximum 25 search to prevent fraud.
Mitra’s main things
Mitra helps investors in the following tasks:
-## Endantification of Unclaved Investments ##-Investors get the facility to find out the investment that he has forgotten or the investment that someone else has made for him.
-## Encouragement for KYC Compliance ##-Encourages updating KYC details, which reduces the number of non-complex followers.
-## A decrease in unclaymed folios ##-It helps in reducing unclaved mutual fund folios.
-## More transparency ##-This helps in increasing transparency in financial systems.
– ## Reduction in risk related to fraud ##- Help in securing the redemption from fraud.
## Definition of Inactive Folio ##
Inactive folios means a mutual fund account, in the last 10 years, no transaction (financial or non-financial) has been done by Investor, but it has units present in it.
## Platform Hosting and Cyber Security ##
The Mitra platform will be managed jointly by Computer Edge Management Services (CAMS) and KFIN Technologies. She will work as an agent of asset management companies. This platform can be accessed through links available on the website of MF Central, AMC, Association of Mutual Funds in India (AMFI), two qualified RTAs and SEBI. Measures for strong cyber security will be implemented to protect the data of Invented.
SEBI has started an attempt to spread awareness for Mitra. It has asked AMC, QRTA, RIA, Effi and Mutus Fund Distributers to inform investors about Mitra. Right now testing of this platform is going on.
This step of SEBI is a big step in the interest of investors. This will increase security in transparency and investment in mutual fund industry. Unclaved wealth in different assets classes in India is more than Rs 2 lakh crore. Earlier, the government launched the UDGAM, which is a Centralized web portal to claim uncured deposits.
I have told about the need to create a financial information dashboard in my book # Navigate Financial Wellness #. This can make important information related to investment to family members. This will not only control investors on their investment but will also make them easier in success planning.
(The author is a chartered accountant. He is an expert on personal finance, especially income tax related cases)