How to Nominate Someone for Your Mutual Fund Investments

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How to add MF Nominee

You have only twenty-four days left to update the nominee for your mutual fund investments and other accounts. The last day to make mutual fund nominee updates is December 31, 2023.


What is Nomination on Mutual Funds?

Mutual Fund nomination means picking someone to handle your fund investments if you pass away. By choosing a nominee, you make sure that this person will get your Mutual Fund assets when you're gone. This act of giving the funds to the nominee is often called the "transmission of units.

You can choose someone to be your nominee whether you're the only owner or share the investment with someone else. The person you pick can be a family member, a friend, someone living abroad (NRI), or even a government or charity group. While you can name a young person (minor) as the nominee, there are certain groups like companies, big family units (HUF), and non-religious trusts that can't be nominees. Always pick someone you truly trust for this role.

Latest Deadline for Mutual Fund Nomination Details Update

According to a notice from SEBI on December 31th, 2023, everyone with mutual funds needs to either update their nominee details or choose not to have a nominee by December 31st, 2023. If you don't do this, your investment account will be locked, and you can't take out your money.

How To Add A Nominee in a Mutual Fund Online?

When you buy mutual funds, you can usually pick a nominee right then by filling in their details in a specific section of the application form. If you want to add a nominee to an investment you already have, just ask the investment company for a form. There's a standard form for naming nominees in mutual funds given by these Asset management companies. You'll need to fill in some important information about the person you're naming on this form.

To choose a nominee for your Mutual Fund investments, you can fill out the standard nomination form given by the investment companies (AMCs). You'll need to include some important information about your nominee on this form.

  • Name of the nominee
  • Nominee’s relationship with the investor
  • Date of birth of the nominee
  • Nominee’s Mobile Number
  • Percentage share of each nominee (if there is more than 1 nominee), etc.

you can pick up to 3 people to receive your mutual fund money as a nominee if something happens to you. You can say how much each person gets. If you don't, they'll share the money equally as a nominee.

How to apply for Mutual Fund Nomination on the RTA Website?

Some Mutual Fund companies use CAMS and others use Kfintech to handle their records and transfers. So, you'll need to set up your nominee details with both groups separately.

  • For the fintech group, go [here]
  • For CAMS, go [here]
  • To set it up, you'll need your PAN, how you hold your funds, choose your account, and your contact info. They'll send you a code to finish the process.

How to update mutual fund nominees by using the INDmoney App?

You can see and set nominees for all your mutual fund investments at no cost on the INDmoney app!

Step 1: Go to your profile section on INDmoney and tap on Nominee Center

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Step 2: Click on Add Family Member to add your Nominee details (you can add up to 3 nominees).
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Step 3: Add your Nominee details (you can add up to 3 nominees).
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Step 4: Add percentage of your nomination to each nominee (you can add up to 3 nominees).

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Step 5: On the nominee center, you will now be able to see all the nominees you have added with their percentage share
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Step 6: Select funds from “Pending for Nomination” tab 
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Lately, the mutual fund nominees have been updated.

How to apply Offline Mutual Fund Nomination Submission to AMCs? 

You need to fill in the nomination form provided by the mutual fund company and submit it along with the necessary documents.
The documents required for mutual fund nomination are:

  • A copy of the nominee's PAN card
  • A copy of the investor's PAN card
  • A passport-sized photograph of the nominee
  • A canceled cheque or bank statement of the nominee's account

Once the nomination form and documents are submitted, the nominee's name will be updated in the mutual fund records. It is essential to review and update the nomination details whenever there is a change in the nominee's details or the investor's personal details.

What Happens If You Do Not Have A Nominee?

Picking a mutual fund nominee makes sure your investments go to the person you want. But, sometimes life gets busy, and we might forget to set up or update our Mutual Fund Nomination. There can be cases when the person we chose as a mutual fund nominee passes away suddenly. Then, you might wonder how the investments can be claimed. In such situations, the person who's next in line (legal heir) can ask for your investments.

To get the mutual fund assets, the investment company (AMC) will need:

  • The original or certified copy of the death certificate.
  • ID papers of the heir.
  • A canceled check with the bank details, stamped by the bank manager. Or, a bank statement with a similar stamp.
  • A FATCA form saying they follow tax rules.
  • A promise paper signed by everyone who might inherit.
  • A certified will or a paper from the court saying who gets what.

After collecting these, the heir should write a letter asking for the investment transfer and send everything to the investment company. This ensures a smooth mutual fund nominee update.

If you haven't chosen a mutual fund nominee or have no legal heir, a relative can ask for your investments. They'd fill out the Transmission Request Form (T3) and give other papers depending on the money involved. The specific documents needed can be checked with the investment company.

Think of Mutual Fund Nomination like a will; it's important for planning who gets your stuff. So, if you're investing or plan to, remember to update or add your mutual fund nominee.