Can You Add Multiple Nominees To Your Mutual Fund? Rules For Adding Minor Nominees, Changing Or Revoking Nomination EXPLAINED

New Delhi: When you invest in mutual funds, you’re not just growing your money, you’re also safeguarding your financial future. But when you are no longer around, your nominee is the person legally entitled to claim your investments.

Why is choosing a nominee important?

By appointing a nominee, you ensure a seamless transfer of your funds to the rightful heirs in your absence. It safeguards your family’s financial future by providing them with immediate access to money when you are not around. 

What happens in absence of a nominee? 

Without a nomination, allocating your mutual fund assets can become difficult. If you don’t choose anyone in your mutual fund policy, the payout doesn’t automatically go to your family. Instead, it must go to your legal heir. Without a nominee, your heirs may need to furnish legal documents to access the money. 

How many nominees can you add to mutual fund?

According to SEBI guidelines, an investor can add up to three nominees to the mutual fund policy. The nominees can be your family members or dependents. The share of each nominee in the investment should be clearly mentioned. 

Rules for adding minor nominees

Minors can also be added as nominees in a mutual fund account. When nominating a minor, a guardian should be designated who will oversee the investment until the minor reaches adulthood.

NRIs can be nominees

NRIs are also eligible to be made nominees in a mutual fund. However, they must comply with exchange control rules.

Can companies be nominees?

Only individuals can be nominees in mutual fund policies. Companies, HUFs or partnership firms are not eligible to be nominated.

Govt bodies, charitable trusts can be nominees

Government bodies, charitable trusts or any person designated by official position can be nominated as beneficiaries for mutual fund investment.

Changing nomination

You can update or change the nominees in your mutual fund policy at any time. You have to submit a new nomination form to update the information.

Revoking nomination

To cancel a nomination, you have to submit a cancellation form to the mutual fund company.

How to add a nominee to mutual fund?

You can add a nominee to your mutual fund policy by submitting a nomination form either online or offline. Provide the nominee’s details, including their name, relationship to you and contact details.