Are you one of those who invested their hard-earned money in different financial instruments and then forgot about it? You are not alone. Many people tend to lose track of their investments due to the complexity of the investment process. But the good news is that you can recover your lost or forgotten investments with the help of unclaimed investment and debtor recovery services.
In this comprehensive guide, we will explain what these services are and provide insights on how to recover your investments from various financial instruments such as physical shares, mutual funds, fixed deposits, and more.
Understanding Unclaimed Investment & Debtor Recovery Services
Unclaimed investment and debtor recovery services are professional services that help investors recover their lost or forgotten investments. These services are particularly useful when investors are unable to track their investments or when they are unaware of their investments’ existence.
According to recent reports, there are over 3.3 million unclaimed demat accounts in India with a total value of more than Rs. 15,000 crores. Additionally, there are over 8.5 million unclaimed fixed deposits with a total value of more than Rs. 25,000 crores. These numbers indicate that many investors have lost track of their investments or forgotten about them altogether.
Now, let’s say you invested in a mutual fund several years ago but have since lost track of their investment. Tracing them back or redeeming them back can appear to be a mounting task. And when you are new to the process, it can be like finding a needle in the haystack.
But, by availing of the services of a professional recovery service provider, you can identify your investment and take the necessary steps to recover it. Besides, these services use advanced technology and tools to identify and track investments that investors may have forgotten about. The professionals at these services complete the necessary paperwork and formalities to recover the investments on behalf of the investor.
Demat of Physical Shares for Recovery from IEPF
Now many investors hold physical shares in their names but fail to dematerialize them, resulting in unclaimed shares. Investors who have invested in physical shares can opt for the demat of physical shares for recovery from IEPF.
The IEPF or Investor Education and Protection Fund was created by the Government of India under the Companies Act, 2013. The purpose of this fund is to provide protection to investors and ensure their investments’ safety. The IEPF has a mechanism in place to help investors recover their lost or forgotten investments.
Under the IEPF process, investors can claim their unclaimed investments by submitting a claim form along with supporting documents to the IEPF Authority. The IEPF Authority then verifies the claim and releases the investment to the investor.
For instance, if an investor holds physical shares of a company that is delisted, the investor can opt for dematerialization of the shares and recover the investment from IEPF. In case the investor has lost the share certificate, the DP can help the investor obtain a duplicate share certificate and complete the dematerialization process.
The process of dematerialization involves opening a demat account with a depository participant (DP) and submitting the physical share certificates to the DP. The DP will then verify the authenticity of the shares and credit them to the investor’s demat account. Once the shares are in the demat account, the investor can manage them electronically.
Recovery of Unclaimed Mutual Funds and Fixed Deposits
One of the most common types of unclaimed investments is unclaimed mutual funds. According to the Ministry of Corporate Affairs, there are over 6.3 million unclaimed mutual fund units in India with a total value of more than Rs. 5,800 crores. Investors often forget about their mutual fund investments due to the lack of regular communication from the fund house.
When it comes to mutual funds and fixed deposits, investors can use their Permanent Account Number (PAN) to track their investments through the website of the mutual fund house. The website provides investors with a consolidated account statement, which shows all the investments made by the investor in various schemes of the mutual fund house. If the investor has not updated their PAN, they can do so by submitting the necessary documents to the mutual fund house. Once the PAN is updated, the investor can track their investments online.
However, this can be a time-consuming process, especially if the investor has forgotten important details like the folio number, which is a unique identifier for the investment or is unable to track them through the mutual fund house’s website, they can approach unclaimed investment and debtor recovery services for help.
How Rurash Financials can help in finding Forgotten or Lost Investments
Rurash Financials can help expedite the process through unclaimed investment and debtor recovery services in India. The company has a team of experienced professionals who assist investors in recovering their lost or forgotten investments. Rurash Financials offers a wide range of services, including demat of physical shares, recovery of unclaimed mutual funds and fixed deposits, recovery of unclaimed insurance policies, and more.