Mutual Fund Nomination & Transmission 2026: Add a Nominee & Claim Units After Death

Mutual funds, like demat accounts, pass to your family through transmission — and how painful that is depends almost entirely on whether you registered a nominee. SEBI’s 2025 framework lets you name up to 10 nominees per folio, and the claim process is now largely digital through CAMS, KFintech and MF Central. Here is how to set up nomination and exactly how units are claimed after a death.

Adding a nominee to your mutual fund folios

Under the 2025 SEBI nomination framework you can nominate up to 10 persons per folio (up from 3), with an exact percentage share for each. The nomination now captures fuller detail: nominee’s name, relationship, contact details, percentage allocation, and an identity proof (PAN, last four digits of Aadhaar, driving licence or passport). You can add or change nominees free of charge through your AMC, the registrars (CAMS / KFintech), or the unified MF Central (mfcentral.net) portal, which updates all your folios in one place.

As with demat, nomination or a signed opt-out is required for folios — see our demat nomination guide for the parallel rules on the securities side.

Nominee vs legal heir — the same trap

A mutual fund nominee, like a demat nominee, is the person the AMC hands the units to — but not necessarily the final owner. Ownership still follows your Will or succession law; the nominee effectively receives the units as a trustee for the legal heirs. So a nomination makes the claim fast, but a Will decides who ultimately keeps the money. You want both. (The same principle the Supreme Court affirmed for shares applies to the broader estate-planning picture.)

Claiming units after death: the transmission process

When a unitholder dies, the claimant submits a Transmission Request Form (Form T3) to the AMC or RTA. The documents depend on who is claiming:

The ₹5 lakh threshold

As with demat transmission of shares, the documentation scales with value. Where the transmission amount exceeds ₹5 lakh, the claimant’s signature must be attested by a notary public or a magistrate (JMFC), and legal-heir claims at higher values need the court instruments above. For nominated folios under ₹5 lakh with a single claimant, the process is the quickest — typically completed in 15-30 days. Larger or contested claims take longer and may need bank guarantees or court orders.

Step-by-step

1. Get several attested copies of the death certificate.
2. Identify all folios — a consolidated MF statement from CAMS/KFintech or MF Central lists every folio across AMCs.
3. Complete Form T3 and gather the documents for your claimant category.
4. Submit to the AMC/RTA or through MF Central; complete KYC for the receiving account.
5. On verification, the units (or their value) are transferred to the claimant.

The five-minute lesson

Registering nominees across all your folios — easiest in one pass on MF Central — converts a months-long, document-heavy legal-heir claim into a quick form submission for your family. Do it today, set the percentage splits to match your wishes, and make sure your Will tells the same story.

Frequently Asked Questions

How many nominees can I add to a mutual fund folio?

Under SEBI's 2025 nomination framework you can name up to 10 nominees per folio, raised from 3, with an exact percentage share for each. You can add or change nominees free of charge through your AMC, the registrars CAMS or KFintech, or the MF Central portal, which can update all your folios at once. Each nominee's identity is recorded via PAN, last four digits of Aadhaar, driving licence or passport.

Is a mutual fund nominee the owner of the units?

No. The nominee is the person the AMC transfers the units to on the investor's death, but not automatically the final owner. Ownership follows the Will or succession law, with the nominee effectively holding the units as a trustee for the legal heirs. Nomination makes the claim fast and document-light, but a Will decides who ultimately keeps the money, so you should have both.

How do I claim mutual fund units after the death of an investor?

The claimant submits a Transmission Request Form (Form T3) to the AMC or RTA with an attested death certificate. A registered nominee needs their KYC, bank details and contact information. A legal heir with no nominee additionally needs succession papers such as a Will with probate or a succession certificate. The process can be done through the AMC, CAMS, KFintech, or MF Central, and a nominated folio under ₹5 lakh is usually completed in 15-30 days.

What documents are needed if there is no nominee?

If there is no nominee, the legal heirs must provide the death certificate, their own KYC, and valid succession papers — a Will with probate or a succession certificate. Where the amount exceeds ₹5 lakh, the claimant's signature must be attested by a notary public or magistrate, and higher-value or contested claims may require bank guarantees or court orders, making the process longer than a simple nominee claim.

Can I update nominations for all my mutual funds at once?

Yes. The MF Central portal (mfcentral.net) lets you view and update nominations across folios held with different AMCs in one place, and registrars CAMS and KFintech cover the AMCs they service. Updating nominations is free, and it is worth doing in a single pass so no folio is left without a nominee.

Sources: SEBI nomination framework (2025) for mutual funds; AMFI / CAMS / KFintech / MF Central transmission guidelines; Form T3 requirements. Thresholds and documents can vary by AMC — confirm with the registrar. Current as of 2026.