India's mutual fund sector needs stronger transparency measures, experts say

India's mutual fund industry requires comprehensive reforms to improve transparency and accessibility for retail investors seeking to reclaim forgotten investments, market participants say. Key proposals include establishing consistent publication of regulatory dispute rulings, creating uniform documentation standards for investment claims, and developing a centralised name-based search mechanism.

The standardised approach to claim documentation would simplify the process for families attempting to recover unclaimed mutual fund units from deceased investors or dormant accounts. Currently, varying requirements across fund houses and custodians create administrative friction for claimants navigating the recovery process.

A centralised search facility would enable investors and their heirs to identify unclaimed holdings without contacting individual asset managers. This digital infrastructure gap has historically prevented many Indians from accessing legitimate investment returns held in their names across the market.

Regulatory transparency regarding dispute resolutions would establish clearer precedents for claim settlements and enhance investor confidence in the grievance redressal system. Market observers suggest these foundational reforms would modernise India's mutual fund ecosystem and protect retail investor interests more effectively.