What This Guide Covers (Quick Overview)
- What a nominee is in mutual funds and why it matters
- How to add a nominee online via MF Central, Groww, and the AMC website
- How to change or remove an existing nominee
- Can you add multiple nominees and explain how to split the percentage
- What happens if no nominee is registered when the investor passes away
The first time I invested in a mutual fund, I focused on things like returns, SIP amount, and fund selection. But later, while reviewing my investment details, I realised I had never added a nominee. That’s when I started looking into **How to Add or Change Nominee in Mutual Fund Online** and discovered that the process is much easier than most people think.
If you’re wondering whether you can add, update, or change a nominee online, the short answer is yes. Most mutual fund platforms now allow you to do it digitally in just a few minutes.
In this guide, you’ll learn the exact steps to add or change a nominee in a mutual fund online, the documents you may need, and the common mistakes to avoid so your investments remain secure for your family.
What is a Nominee in a Mutual Fund?
A nominee is the person you designate to receive your mutual fund investments in case of your death. It’s a simple but critical piece of financial planning.
The nominee is not necessarily the legal heir or the owner of the assets. They are the custodian, the person who receives the funds and is then responsible for distributing them as per the investor’s will or legal succession laws. That said, in most practical family situations, the nominee and the intended beneficiary are the same person.
As per SEBI’s nomination regulations, all mutual fund investors are required to either register a nominee or explicitly opt out of nomination. This rule was updated in 2022 and applies to all existing folios as well.
Why Adding a Nominee is Non-Negotiable
Here’s what happens when an investor passes away without a registered nominee:
- The family has to approach the AMC or registrar with a death certificate, a legal heir certificate, a succession certificate, and sometimes a court order
- The process can take months and requires multiple document submissions and verifications
- In some cases, the funds may be frozen temporarily while the legal process plays out
- If the amount is large and there are multiple claimants, a court-issued succession certificate is mandatory
With a nominee registered, the process is dramatically simple. The nominee submits the death certificate, their identity proof, and the funds are transferred. That’s the difference between a smooth handoff and a family running from court to court.
How to Add a Nominee in a Mutual Fund Online (3 Easy Methods)
You can add a nominee through three main channels: MF Central, your investing platform (like Groww), or directly on the AMC’s website. Here’s how each works.
Method 1: Add Nominee via MF Central (Covers All Folios at Once)
MF Central is the official platform operated jointly by CAMS and KFintech. It’s the most powerful option because a single nomination update here applies across all your folios, regardless of which AMC they belong to.
- Go to mfcentral.com and log in with your PAN and OTP (sent to your registered mobile number).
- Navigate to ‘Service Requests’ or ‘Nomination’ in the menu.
- Select the folio or folios where you want to add or update the nominee.
- Enter nominee details: full name, date of birth, relationship, and percentage allocation.
- If the nominee is a minor, you’ll also need to provide guardian details.
- Confirm with an OTP. Done. No physical paperwork required.
Method 2: Add Nominee via Groww
- Open the Groww app and go to your Profile or Account section.
- Look for ‘Nominees’ or ‘Manage Nominees’ under account settings.
- Tap ‘Add Nominee’ and fill in the required details: name, relationship, date of birth, and share percentage.
- Verify with your Groww PIN or biometric.
- The nomination is updated for your Groww mutual fund folios.
Method 3: Add Nominee Directly on AMC Website
If you invested directly with an AMC (e.g., SBI Mutual Fund, HDFC AMC), log in to that AMC’s investor portal and look for the nomination section under ‘My Profile’ or ‘Account Services’. The steps are similar: enter nominee details, verify with OTP, done.
Note that if you have investments spread across multiple AMCs, you’ll need to update the nomination on each one separately. This is why MF Central is the more efficient option; it covers all folios in one place.
How to Change an Existing Nominee in a Mutual Fund
Changed your mind about who your nominee should be? This is common after major life events, such as marriage, divorce, or the birth of a child.
The process to change a nominee is the same as adding one. Log in to MF Central or your investing platform, go to the nomination section, select the folio, and update the nominee details. The new nominee replaces the old one once the OTP-based confirmation is done.
There’s no limit to how many times you can update your nominee, and there’s no charge for doing so.
Can You Add Multiple Nominees?
Yes, and this is something most investors don’t know. You can add up to three nominees per folio and allocate a percentage of the investment to each.
| Nominee | Name | Relationship | % Share |
|---|---|---|---|
| Nominee 1 | Priya Sharma | Spouse | 60% |
| Nominee 2 | Aryan Sharma | Son | 40% |
The total percentage across all nominees must add up to exactly 100%. If you don’t specify percentages, the default is equal distribution among all nominees.
If a nominee is a minor (under 18), you must also register a guardian who will manage the funds on their behalf until they turn 18.
What Details Do You Need to Register a Nominee?
| Detail Required | Notes |
|---|---|
| Full name of nominee | As per their official ID |
| Date of birth | Mandatory |
| Relationship with investor | Spouse, child, parent, sibling, etc. |
| Percentage share | If adding multiple nominees |
| Guardian details | Only if nominee is a minor |
| Nominee’s address | Required for physical claim processing |
You don’t need to submit any documents for the nominee at the time of registration. The nominee’s documents are only needed when they actually make a claim after the investor’s death.
What Happens if There is No Nominee in a Mutual Fund?
This is a situation families genuinely struggle with. Without a nominee, here is what the claiming process looks like:
- Amount below ₹5 Lakh: AMCs may process the claim based on an indemnity bond and affidavit from the legal heirs, along with the death certificate and proof of relationship.
- Amount above ₹5 Lakh: A legally obtained succession certificate or probate of will is typically required. This involves filing a petition in court, which can take months or even years.
- If there are Multiple Legal Heirs: All heirs need to agree and sign off, which becomes complicated if there is any family dispute.
A registered nominee bypasses all of this. The nominee presents the death certificate and their identity proof, and the AMC processes the transfer. Simple, fast, and without legal intervention in most cases.
Nominee vs Legal Heir: What’s the Difference?
Many investors think that the person named as a nominee automatically becomes the owner of the mutual fund investment after their death. However, a nominee and a legal heir are not always the same person.
A nominee is the person who receives the mutual fund units from the AMC after the investor’s death. However, the final ownership of those investments may still depend on the investor’s will and applicable succession laws. To avoid future disputes, it is a good idea to keep your nominee details and will aligned with your wishes.
Can You Skip Nomination in Mutual Funds?
Yes, mutual fund investors have the option to opt out of nomination if they do not want to add a nominee. Most AMCs allow this by submitting a declaration confirming your choice.
However, for most investors, adding a nominee is the better option. It helps family members claim the investment more easily and reduces paperwork in case of an unexpected event.
Frequently Asked Questions (FAQs)
Q. 1 How to add a nominee in mutual fund?
Log in to MF Central (mfcentral.com) with PAN and OTP, then go to the ‘Nomination’ section. Select your folio, fill in the nominee’s name, date of birth, relationship, and percentage, and confirm with OTP. This process is most convenient because all the folios are covered in one go.
Q. 2 Can I add multiple nominees in mutual fund?
Yes, you can add up to 3 nominees per folio. You need to specify the percentage share for each nominee, and the total must add up to 100%. If you don’t specify percentages, the investment is split equally among all nominees.
Q. 3 What documents are needed to add a nominee in mutual fund?
No documents are required at the time of adding a nominee. You only need the nominee’s name, date of birth, relationship, and address. Documents from the nominee are only required at the time of actual claim processing, after the investor’s death.
Q. 4 Is there any charge for changing the nominee?
No, there is no charge for adding, changing, or removing a nominee in a mutual fund. You can update your nomination as many times as needed, completely free of cost, through MF Central or your investing platform.
Q. 5 What happens to a mutual fund if the nominee dies before the investor?
If your registered nominee predeceases you, the nomination becomes invalid. You should update your nomination immediately to register a new nominee. If no new nominee is registered and you pass away, the funds would go through the legal heir claim process, which is more complex.
Q. 6 Is a nominee the legal owner of a mutual fund after an investor’s death?
No. A nominee is a trustee who receives the funds on behalf of the legal heirs. The legal ownership is determined by the investor’s will or succession laws. To avoid complications, it’s best to ensure your nominee and your intended beneficiary are the same person, and that your will reflects this.
Q. 7 What will happen if Minor is made a nominee?
You can register a minor as a nominee, but you must also register a guardian who will manage the funds on the minor’s behalf until they turn 18. The guardian’s details, name, relationship, and date of birth are required at the time of nomination registration.
Conclusion
Investing is only half the job. Making sure your investments actually reach your family when they need it most, that’s the other half.
Adding a nominee takes five minutes online. Changing it is equally simple. And yet, millions of folios in India have no nominee registered. leaving families to navigate a legal maze at the worst possible time.
Take five minutes today. Log into MF Central, check your folios, and make sure each one has a current, correct nominee. It’s one of the simplest things you can do for the people who matter most.
And while you’re reviewing your mutual fund account, it’s also a good time to check your complete portfolio. Our guide on how to check your mutual fund portfolio online shows you exactly how to see all your investments in one place. Or if you want to understand the basics of how mutual funds work first, start with what is a mutual fund in India.
Disclaimer
This article is for educational and informational purposes only and does not constitute legal or financial advice. Nomination rules and claim processes may vary by AMC. Please consult a legal advisor for guidance on succession planning and estate distribution.