Legal information notice: this article provides general information and isn't a substitute for advice from a qualified lawyer.
“Invest in our mutual fund scheme — 3% a month, capital guaranteed.” A “fund manager” sends a brochure, an app link, and a UPI ID. Real mutual funds work very differently: they are run by registered asset management companies, invest through regulated channels, and cannot promise returns. When a “mutual fund” offer looks like a guaranteed monthly income, it is usually a fraud borrowing the mutual fund name.
No genuine fund house asks you to pay a fee to a personal account to redeem units.
Contact the fund house through its official website or customer care (not the number in the message) to confirm whether you actually hold any investment with it.
Give your bank the payment details and ask it to block further debits and flag the receiving account.
Use cybercrime.gov.in or 1930, attaching brochures, app links, chats and payment proof.
If a SEBI-registered fund house, distributor or intermediary was involved in wrongdoing, lodge a complaint on SEBI SCORES.
If your KYC details or PAN were shared with a scammer, watch your existing investment accounts and consider alerting your fund house and registrar. Our guides on PAN and identity misuse explain the next steps.
| Genuine | Fake Scheme |
|---|---|
| Regulated fund house; returns depend on the market | Fixed or guaranteed monthly returns |
| Payment to the fund's verified account or platform | Payment to a personal account or unknown UPI ID |
| Units and statements from the fund or registrar | A screenshot or PDF 'certificate' with no statement |
| Redemption credited to your bank account without fees to you | Asks for a fee or tax to redeem |
No. Reporting to your bank, the cyber crime portal and SEBI’s SCORES is free.
Yes. A lawyer is worth involving for large sums or if a company, distributor or several victims are involved.
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No. Mutual fund returns depend on the market, and offer documents carry a market-risk warning. A fixed guaranteed return is a fraud signal.
Use the fund house’s official website and SEBI’s intermediary search, and confirm the payment account through SEBI’s verified handles and SEBI Check tool.
No. A demand for a fee or tax to a personal account to redeem units is a scam pattern.
SEBI has introduced UPI IDs ending in @valid for registered mutual funds and brokers so investors can recognise legitimate payment destinations.
Alert your fund house and registrar, monitor your accounts, and follow the steps in our PAN and identity-misuse guides.
Report to your bank and 1930 or cybercrime.gov.in, and use SEBI SCORES where a registered intermediary is involved.
This article is for general information only and does not constitute legal or financial advice. Verify any investment offer independently with the fund house and SEBI before paying.
