How a nominee can claim Mutual Fund investments

nominee can claim Mutual Fund investments
Nominee can claim Mutual Fund investments
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How a nominee can claim Mutual Fund Investments after the death of Sole owner?

People save and invest in the hope of providing a better life for themselves and their loved ones. But death is inevitable. Sometimes people miss out on sharing information about investment details with their loved ones. So, in case of the sudden demise of the unitholder, the nominee has to face problem in tracing the investment and the transmission of Units. Many of them do not have adequate knowledge about How a nominee can claim Mutual Fund investments.

There is a procedure a nominee has to follow to claim Mutual Funds Investments after the death of Sole owner.

The units held in the name of deceased unit-holder are transferred either to the surviving unit-holders or to the nominee or to the legal heirs. Units represent investors’ holding in a mutual fund. This process is called Transmission.

Who is the Nominee in Mutual Funds Investments?

A nominee is a person who is nominated by the investor and takes care of the asset and can claim the investments in the event ofdemise of the investor.

Every mutual fund scheme offers nomination facility to its individual investors.  They can nominate a person as a nominee in whom all rights in the units will vest in the event of the death of the unitholder.  

Who can be a nominee in Mutual Funds Investments?

Any person including a minor can be a nominee of mutual fund investments.  Nomination can also be made in favour of:

  1. Central or State Government
  2. A local authority
  3. Any person designated by virtue of his/her office
  4. A religious or charitable trust.

Nomination cannot be made in favour of:

  1. A company/body corporate
  2. Partnership firm
  3. Hindu Undivided Family (HUF) 
  4. Society or a trust (other than a religious or charitable trust) 

 The name and address of the guardian of the nominee is also recorded for making the nomination if nominee is a minor.

How a nominee can claim Mutual Fund investments after the death of Sole owner?

There is a general procedure for transmission of units of Mutual Funds for various  Asset Management Companies (AMCs). There may be some changes in the formats or documents required in a specific AMC, but the procedure is broadly the same.

To claim the transmission of units to his/her name, the nominee is required to submit required documents to the Mutual Funds Companies.

The list of required documents to be submitted is-

  • Complete the KYC process
  • The nominee should submit Form T3,
  • Death Certificate of deceased Unit Holder in original or Photocopy duly attested by a Notary Public or a Gazetted Officer,
  • KYC of the nominee or Guardian (in case of nominee being a minor / or of unsound mind),
  • Cancelled cheque leaf with name and bank account number pre-printed thereon of the nominee OR copy of bank statement / Photocopy of Bank Passbook of the nominee with current entries (not older than 3 months) attested by a Notary Public or a Gazetted Officer or Bank Manager
  • Copy of Birth Certificate (in case the nominee is a minor).
  • Additionally, submit Bank Attestation of Signature of the nominee or Guardian (in case the nominee is a minor): 
  1. By the Bank Manager as per Annexure-I where Transmission value is up to ₹200,000.
  2. Or By a Notary Public or a Judicial Magistrate First Class, if the Transmission value is more than ₹200,000 (in the space provided in TRF- (Transmission Request Form).

How much time will it take to transfer the investment of the deceased investor to the surviving investors or nominee?

The Transmission process is already detailed in this blog. Subject to the documents submitted being in order and in compliance with the process, It generally takes about 11 working days from the date of receipt of relevant documents complete in all respects.

Can the nominee of the investment be changed online?

Nominee cannot be changed online. The specified form for change of nominee needs to be filled up, signed by the all the investors and submitted with the details of nominee to the office of AMC or RTA. For downloading the Nominee updation form, click here

For getting address of RTA or Mutual Funds, click here

There may be some other situations related to How a nominee can claim Mutual Fund investments or transfer of funds from deceased unit holders to the nominee of that investment. Please refer to the ‘Guidance’ section of the Website or send your query to us in the ‘Contact us’ section of the Website

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