Mutual Fund Nomination: How to Add or Change Nominee in Mutual Funds Online?

A nominee in a mutual fund account is a person designated to receive the investments after the investor’s death. Investors can add up to three nominees and update them at any time via online or offline channels.

Key Highlights:

• Nominees can be added, updated, or changed at any time via online or offline processes.
• Investors can add up to three nominees to a mutual fund account as per SEBI guidelines.
• Minor and NRI nominees are allowed, subject to guardian details and applicable regulations.

What is Mutual Fund Nomination?

Nomination in a mutual fund refers to the process of appointing one or more individuals to receive the funds or investments held in a demat account in the event of the investor's demise. It is a way to safeguard your financial assets and clarify the transfer of your investments. 

Without a nominee, claiming your saved assets can become a difficult process for your loved ones, potentially leaving your money inaccessible if your investments transfer to unclaimed assets. 

Mutual Fund Account Nomination Rules 

When adding a nominee to your mutual fund account, it is essential to understand the nomination rules set by SEBI. 

• Firstly, the nominee should be an individual and not an institution or organisation.
• Secondly, if the investor is a minor, a guardian must be appointed as the nominee until the minor reaches the age of majority.
• It is important to provide accurate and complete details of the nominee, such as their name, date of birth, contact number, and address.

Eligibility Criteria for Nominees 

To be eligible as a nominee in a mutual fund account, the following requirements must be met:

• It is possible to nominate any person, including a minor. The only exceptions are companies, partnership firms, Hindu Undivided Families (HUFs), societies, or trusts that are not religious or charitable.
• If the nominee is a minor, the customer making the nomination must provide the name and address of the minor nominee’s guardian.
• NRIs can also be nominees, subject to the exchange control rules in force at the time.
• A nomination can also be made to the Central Government, any state government, or local authority. It can also be made to any person designated by virtue of their office, or a religious or charitable trust.

How to Add a Nominee in Mutual Funds Online?

Adding a nominee to your mutual fund account is a simple online process. It can be done through NSDL, CDSL, or any registered broker or Depository Participant (DP) such as Zerodha, Grow, Upstox, ICICI Direct, HDFC Securities, and others. While the interface may differ slightly across platforms, the overall steps remain largely the same.

Step 1: Log in to Your Account

Start by logging in to your broker or DP account using your registered details, such as PAN, mobile number, or client ID.

Step 2: Find the Nomination Option

Go to the account settings or service section and look for “Nominee”, “Add/Update Nominee.”

• NSDL users can use the NSDL e-services portal
• CDSL users can access nomination through the Easi/Easiest platforms
• Broker apps usually keep it under profile or account settings

Step 3: Verify Your Details

Enter your basic details such as DP ID, client ID, mobile number, mail ID, and PAN. You will receive an OTP on your registered mobile number or email for verification.

Step 4: Choose Your Preference

Select whether you want to add a nominee or opt out of nomination. Adding a nominee is strongly recommended to ensure a smooth transfer of investments in the future.

Step 5: Enter Nominee Details

Fill in the nominee’s details carefully, including name, date of birth (mandatory if the nominee is a minor), relationship, and contact details. If adding more than one nominee (up to three allowed), you can also assign a percentage share.

Step 6: Complete E-Sign Verification

Authenticate the request using Aadhaar OTP, PAN-based verification, or your platform’s e-sign process. Accept the declaration and proceed.

Step 7: Final Confirmation

Enter the final OTP to confirm your request. Once submitted, the nominee details are updated and linked to your account, usually instantly or within a short processing time.

Note: Most regulated platforms now require investors to either add a nominee or formally opt out, in line with SEBI guidelines. You can also update your nominee at any time through the same process.

How to Update/Change the Mutual Funds Account Nominee?

As an investor, you have the liberty to modify the nominee(s) in your demat account as per your preference. The process is simple and hassle-free, and you can change your nominees at any time. 

All you need to do is fill out a nomination form and submit it to your Depository Participant (DP). Alternatively, you can also opt for the online process to make the necessary changes. This gives you the flexibility to update your nominees, making it easier for you to manage your investments effectively.

How Many Nominees can be added to a mutual fund account? 

As per the regulations set by the Securities and Exchange Board of India (SEBI), an investor can add up to three nominees to their mutual fund account. These nominees can be individuals, including family members or dependents.

Benefits of Adding a Nominee to a Mutual Fund Account 

Adding a nominee to your mutual fund account is crucial for several reasons. 

• It ensures that your investments are passed on to the right person in accordance with your wishes, thereby avoiding any legal disputes. 
• It streamlines the process of transferring funds and reduces the administrative hassle for your loved ones.
• It provides financial security to your family members, especially in the absence of your support.

Conclusion

Adding a nominee to your mutual fund account is a simple but important step in protecting your investments. It ensures that your savings are transferred smoothly to your chosen beneficiary and helps reduce delays, paperwork, and legal complications during difficult times. 

Also Read About:
Types of Mutual Funds
How Mutual Funds Work in India With Example
Direct vs Regular Mutual Fund

Related Article:
1. Nominee in Bank
2. Nomination in Demat Account