How to Add a Nominee to a Mutual Fund? A Step-by-Step Guide to Protect Your Investment

Nomination in mutual funds is the process of appointing one or more individuals who will receive the mutual fund units in the event of the investor's death. It helps make the transmission of investments smoother and can reduce the documentation and procedural requirements for the nominee.

According to SEBI’s rules, nomination is mandatory for individual account holders unless they opt out of it. 

As per circular SEBI/HO/OIAE/OIAE_IAD-3/P/CIR/2026/12676, the following SEBI nominee rules apply for MF folios from 1st September 2026:

1. Online Method:

You can add nominees through the AMC’s website, investment app, or through a registrar (CAMS or KFintech) website. We cover all below:

Through AMC Website or Investment Platform 

Step 1: Log in to the AMC’s website or your investment app using your credentials.

Step 2: Go to the folio management section and select ‘Add/Update Nominee Details’.

Step 3: Select the folio for which you wish to add nominee details.

Step 4: Enter nominee details, including:

• Nominee’s name
• DOB
• Relation to you
• Identification document
• Contact details

Step 5: Specify the percentage of share for each nominee if you are nominating multiple people.

Step 6: Submit the request and verify with the two-factor OTP verification codes sent to your mobile number and email ID.

Some platforms may also provide a digital signature certificate or Aadhaar-based e-signature facility for verification. 

Through RTA Portals

• Step 1: Log in to the RTA portal using your PAN, mobile number, and OTP.
• Step 2: Select the folio for which you wish to add a nominee.
• Step 3: Choose ‘Register Nominee’ and proceed.
• Step 4: Click on ‘Add’ to enter nominee details (same as the ones listed before)
• Step 5: Enter the OTP to confirm your request.
   

2. Offline Method:

You can also complete the mutual fund nomination process offline. Here’s how to add a nominee to mutual funds offline:

Step 1: Download the Mutual Fund Nomination Form from the AMC or RTA website.

Step 2: Fill in details like:

• Folio number
• Nominee name
• Nominee’s date of birth
• Nominee’s relationship with you
• Nominee’s address and contact details

Step 3: Sign the form (names and signatures of 2 witnesses are needed if a thumbprint is used).

Step 4: Submit the form at the nearest AMC branch or RTA office.

Once you know how to add a nominee to mutual funds, it doesn’t mean you cannot change them. You can change mutual fund nominees at any time using the following steps:

• Step 1: Log in to the AMC’s website or your investment platform
• Step 2: Go to the folio management section and click on ‘Add/Update Nominee Details’.
• Step 3: Click the ‘Update/Modify Nominee’ option and fill in the new details.
• Step 4: Verify your action with the OTP.
• Step 5: Submit the request.

For offline nominee modifications, you have to fill and submit the duly signed Mutual Fund Nomination Form at the AMC branch office or RTA service centre. 

Who Can Be a Nominee?

Mutual fund investors can nominate any:

• Individual person, including spouse, parents, kids, family member, friends, etc.
• Minors with the guardian’s details clearly provided.
• NRIs (subject to foreign exchange rules).
• Central/state governments, religion/charitable trusts, or local authorities.
   

Who Cannot Be a Nominee?

Investors can only nominate individuals. This means they cannot nominate the following as per SEBI’s nominee rules:

• Companies
• Partnership firms
• HUFs
• Societies
• Non-charitable trusts

Learning how to add a nominee to mutual funds is important if you’re an individual investor and want your hard-earned money to go to the people you care most about. The online mutual fund nomination process can be completed through the AMC website, your investment app, or the RTA portals. You simply have to:

• Log in and go to the ‘Nomination’ section.
• Select the folio and click ‘Add Nominee’.
• Enter your nominee’s details and the allocation percentage (if you have multiple nominees).
• Verify with the authentication mode given (typically OTP verification)

For the offline route, you need to download the form, fill it up, and submit it to the nearest AMC branch or RTA office. Completing these simple steps can help ensure that your MF investments reach the hands you want them to, even in your absence. 

1. What is the eligibility criteria for mutual fund nominees?

The chief criterion is that the nominee has to be an individual. It can be a spouse, parent, child, relative, or friend. Minors can also be nominated if guardian details are provided. NRIs may also be nominated, subject to applicable regulations. 

Non-individual entities like institutions or organisations (HUFs, societies, and companies) cannot be nominees. However, religion/charitable trusts are allowed as nominees. 
 

2. Why is nomination in mutual funds important?

Nomination helps simplify the transmission of mutual fund investments after the investor's death. It can make the process of claiming the investments easier for the nominee by reducing procedural requirements.

3. What happens if the mutual fund investor dies without adding nominees?

If no nominee has been registered, the mutual fund units go to the legal heirs of the investor. However, this is not automatic. Legal heirs have to submit various documents to prove their relationship to the investor and others. This makes the process longer and more difficult.
 

4. How many nominees can I list for one folio?

From 1st September 2026, 3 nominees are allowed per mutual fund folio. If you add more than 1 nominee, you should also assign the % share they will receive from the folio.
 

5. Can I register nominees for a minor account?

No. As per SEBI’s rules, if the investment is made in the name of a minor, you cannot register a nominee until the minor becomes an adult.