A nominee is the person designated by a mutual fund investor to receive the investment proceeds in case of the investor's death — mandatory under SEBI rules.
SEBI mandates that all new mutual fund investors nominate at least one person for their folios. The nominee receives the investment value upon the investor's death, subject to submission of required documents (death certificate, nominee KYC, etc.). A nominee is a custodian — they hold the assets on behalf of the legal heirs. Nomination does not override a will; if there's a conflict between a nominee and a legal heir, courts decide. Up to three nominees can be registered with specified percentage allocations.
If something happens to you, your nominee is the person who will receive your mutual fund money — like a beneficiary on a life insurance policy. Without a nominee, your family must go through a lengthy legal process to claim the investment. Adding a nominee takes 2 minutes online and protects your family. Nominate someone you trust — it's free and mandatory.
Nomination can be added online through your platform or AMC portal.
Up to 3 nominees can be added per folio, with percentage allocation summing to 100%.
In case of investor's death: nominee submits death certificate, nominee's ID/KYC, and a transmission request to the AMC/RTA.
AMC processes the claim and transfers units to the nominee's folio (or redeem as requested).