Claiming Mutual Funds as a Nominee : A Step-by-Step Guide

Losing a loved one is never easy, and during such an emotional time, dealing with finances can feel overwhelming. But if you’ve been named as a nominee, claiming mutual funds is an important step to ensure their investments are transferred as they intended.

The process might sound complicated, but the truth is, most mutual fund companies in India now follow a streamlined system to help nominees claim what’s rightfully theirs with minimal hassle.

In this guide, we’ll break down everything you need to know about claiming mutual funds—from required documents and forms to what to do if there’s no nominee or a Will is involved. Our goal is to make this process simpler, so you can focus on what truly matters.

Your Easy Guide: Claiming Mutual Fund Units as a Nominee

Claiming mutual funds might seem like a big task, but if you follow these steps, it’ll be much smoother.

1. Start with the Right Form: The Transmission Request Form (Form T3)

Think of Form T3 as your official starting point. It’s the main paper that tells the mutual fund company you’re making a claim.

• Where to Find It: You can easily download Form T3 from the AMFI website (that’s the main body for mutual funds in India) or directly from the website of the specific mutual fund company where the money is invested.
• Filling It Out: Make sure you fill in every detail correctly. Double-check things like the deceased person’s mutual fund account number (called a folio number), your details as the nominee, and how you want the funds transferred (maybe to your existing mutual fund account, or a new one).

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2. Proof of Passing: The Death Certificate

To confirm that the investor has passed away, you’ll need their death certificate.

• Copy, Please: You need to give a photocopy of the death certificate. You can either sign the photocopy yourself (that’s called self-attested) or get it notarized by a public notary.
• For Young Nominees: If the nominee is a child (under 18), you might also need their birth certificate.

3. Show Who You Are: Your ID and Bank Details

The mutual fund company needs to confirm you’re really you and know where to send the money. So, you’ll need:

• Your PAN Card: A photocopy of your PAN card, signed by you (self-attested). This is a must for identity.
• Your Bank Account Proof: You need to show them your bank account details. You can do this with:
  • A cancelled cheque that has your name pre-printed on it. Just write “CANCELLED” across it.
  • Or, a recent bank statement or passbook copy (make sure it’s not older than 3 months). It should clearly show your name, account number, and bank code (IFSC).
• KYC Status: You also need to be KYC (Know Your Customer) compliant. If you already are, just provide the proof. If not, you’ll need to fill out a KYC form and submit it with your ID and address proof.

4. Getting Your Signature Approved: Depends on the Amount

To make sure your claim is real, they’ll need your signature to be officially approved. How this happens depends on how much money you’re claiming:

• For up to ₹5 Lakh: If the amount is up to ₹5 lakh, your bank manager’s signature attestation is usually enough. They’ll just confirm your signature.
• For Over ₹5 Lakh: For bigger amounts (over ₹5 lakh), you typically need your signature attested by a Notary Public or a Judicial Magistrate First Class (JMFC). Sometimes, mutual fund companies might still accept a senior bank official’s attestation, but it’s best to check with them directly for larger claims.

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5. Any Other Papers They Need?

Sometimes, they might ask for a few more documents:

• Deceased Person’s ID: A self-attested copy of the deceased person’s PAN, Aadhaar, passport, or voter ID.
• Guardian’s Papers: If the nominee is a child, you’ll need the KYC and ID documents of their guardian.

Once you submit everything and they’ve checked it all, the mutual fund units will be transferred to you. Then, you’ll own them and can choose to sell them, move them to another fund, or just keep them as they are.

What If Things Are a Little Different?

Life isn’t always straightforward, right? Here’s what happens in a couple of tricky situations:

What If There Are Multiple Owners?

If the mutual fund account had more than one owner (like a husband and wife), the nominee can’t claim the investments as long as one of the original owners is still alive.

• Goes to the Survivor: In these cases, the mutual fund units automatically go to the person who is still alive. Your rights as a nominee only kick in after all the original owners have passed away.

What If There’s No Nominee?

This is where it gets a bit more complicated. If the person who invested didn’t name a nominee, the process is trickier.

• Legal Heirs Step In: The legal heirs (family members who are legally entitled to inherit) have to prove their right to the money. This usually means providing official documents like succession certificates or legal heir certificates from a court or local authority, plus other legal papers.
• If There’s a Will: If the deceased person left behind a Will, the mutual fund company might ask for something called “probate.” This is a legal process where a court confirms the Will is valid and shows who the rightful claimant is.

This whole “no nominee” situation often involves lawyers and can take quite some time, so it’s best to avoid it if possible!

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Final Thoughts: Make It Easy for Your Loved Ones!

Dealing with someone’s finances after they’re gone is hard enough. So, to make things simpler for your loved ones, investors should always name a nominee for their mutual fund investments.

• Nomination is Key: It truly simplifies the transfer process, making sure that the people you care about can get the money without jumping through too many legal hoops.
• Check Your Papers: If you are a nominee, take your time to make sure you submit all the right documents correctly. This avoids annoying delays when you need the funds most.

💡 Quick Tip: If you’re ever confused or unsure about the process, don’t hesitate to reach out! Talk to a financial advisor or simply call the mutual fund company directly. They are there to guide you.

Navigating this process can feel like a heavy load, but by understanding these steps, you can ensure a smoother and less stressful experience, bringing some financial peace during a difficult time.