How to Nominate Someone for Your Mutual Fund Investments

SEBI has now made it mandatory for mutual fund investors to name nominees. This ensures your investments are transferred smoothly to your family in case of an emergency, avoiding long legal delays. Please complete your nomination soon to prevent any future restrictions on your account.

What is Nomination on Mutual Funds?

A mutual fund nomination means appointing a person who will receive the mutual fund units in case of the investor’s death.

You can choose someone to be your nominee, whether you're the only owner or share the investment with someone else. The nominee 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. Since the nominee will handle the claim process, choose someone responsible, trustworthy, and aware of your investments.

Is Nomination Mandatory for Mutual Funds?

SEBI has made it mandatory for mutual fund investors to either register a nominee or explicitly opt out of nomination.

If nomination details are not updated, investors may face operational restrictions in their folios until compliance is completed.

To avoid inconvenience, it’s advisable to complete the nomination process as early as possible.

How To Add A Nominee in Mutual Fund Online?

1.  At the Time of Investment

While investing through an AMC website, distributor, or investment platform, you’ll find a nomination section in the application form. Simply fill in the required details before submission.

2. After Investment (Existing Folios)

If you already hold mutual funds, you can:

• Log in to the AMC’s website
• Use the Registrar platforms (CAMS or KFintech)
• Complete the nomination update online through OTP authentication or Aadhaar-based e-sign verification

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.

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

You can appoint up to three nominees and specify the percentage share for each. If no percentage is mentioned, the units will be distributed equally among the nominees.

Note: Nomination in mutual funds is allowed only for individual investors. Non-individual entities such as companies, partnership firms, and HUFs cannot register nominees.

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

Mutual fund records in India are maintained by Registrars and Transfer Agents (RTAs) such as CAMS and KFintech. The RTA handling your folio depends on the mutual fund company you have invested in.

• Visit the official website of CAMS or KFintech, depending on your AMC
• Log in using your PAN and registered mobile/email
• Select your mutual fund folio(s)
• Enter nominee details and specify percentage allocation (if applicable)
• Complete the process using OTP or e-sign verification

Note: If your investments are spread across multiple AMCs, each serviced by a different RTA, you may need to complete the nomination process separately on each RTA platform.

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 Centre

Step 2: Click on Add Family Member to add your Nominee details (you can add up to 3 nominees).
 

Step 3: Add your Nominee details 

Step 4: Add the percentage of your nomination to each nominee

Step 5: On the nominee centre, you will now be able to see all the nominees you have added with their percentage share

Step 6: Select funds from “Pending for Nomination” tab 

Lately, the mutual fund nominees have been updated.

How to Apply for Offline Mutual Fund Nomination Submission to AMCs

If you prefer to submit your nomination request offline, you can visit the branch office of the AMC or its Registrar (CAMS/KFintech) and submit a physical nomination form.

You will need to:

• Fill out the prescribed nomination form
• Mention nominee details (name, relationship, date of birth, allocation percentage, etc.)
• Sign the form as per your registered signature

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?

Appointing a nominee ensures that mutual fund units can be transferred smoothly in the event of the investor’s death. 

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. In such cases, the transmission process becomes more detailed and document-intensive. 

In the absence of a registered nominee, legal heirs may need to submit the following documents (depending on the claim amount and AMC requirements):

• The original or certified copy of the death certificate.
• KYC-compliant identity and address proof of the legal heir(s).
• Bank account proof of the legal heir(s), such as a cancelled cheque or recent bank statement.
• Completed KYC and FATCA declarations, if not already available in records.
• An indemnity bond or affidavit from the legal heir(s), as required by the AMC.
• A certified copy of the will, succession certificate, or legal heir certificate (as applicable).

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. The legal heir(s) will need to submit a Transmission Request Form (TRF) along with supporting documents. The specific documents needed can be checked with the investment company.

Mutual fund nomination is an important part of financial and estate planning. It simplifies the transfer of investments and reduces complications for your family. So, if you're investing or plan to, remember to update or add your mutual fund nominee.