What is dormant mutual fund?

A dormant mutual fund refers to a mutual fund account that has not had any transactions, such as purchases or redemptions, for a specified period, often a year or more. These accounts may be considered inactive, and the fund house may classify them as dormant to streamline operations. Investors with dormant accounts may still hold their investments, but they may need to reactivate their accounts to make new transactions. It's advisable for investors to periodically check their accounts to ensure they remain active and aligned with their financial goals.