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How To Make Claim In A Mutual Fund On Death Of The Unit Holder?


Investment in mutual funds has soared in the last one year and new records are being breached everyday. Mutual Fund units are now becoming increasingly popular among investors. This makes it imperative for a second joint holder or a nominee when you buy mutual fund units.


How To Make Claim In A Mutual Fund On Death Of The Unit Holder?
Here are a few ways in which you can claim the units or funds from the account of a diseased holder in case there is an unfortunate event of death. Now claiming the funds would depend on the nature of the account, whether it is a joint account, single operated account or whether there is a nomination. Let's see how to stake claim under different categories.

If the mutual fund scheme is held in joint names

It's highly possible that you hold a mutual fund scheme in joint name, which should always be the case. In that case what the claimant must do is submit the death certificate in duplicate and this should be duly attested by relevant authorities. The mutual fund house might also decide on verifying the original. Once the mutual fund house is satisfied, the person making the claim has to decide whether he wishes to continue with the scheme or not. In case of transmission there would be no worry. But, in case he wishes to en cash the same capital gains will apply as and where necessary.

If the units have a nomination and are not jointly held

Like mentioned above there are two options before the claimaint. He can either get the mutual fund units transferred to his or her name or he or she can redeem the unit. In either of the case, the following would be required:

1) Death certificate duly notarized by the authorities as suggested by the mutual fund house.
2) Bank account details and other details required.
3) All necessary Know Your Customer details.

A single holder without nomination

In the above, the mutual fund would have to ensure that the units are transferred to the rightful legal heir. This is perhaps the most complicated of the above mentioned and would need effort as well as time. It would involve the following process:


1) An indemnity Bond from the legal heir or heirs on the required stamp paper.

2) There would also be a need for affidavits from legal heir or heirs on a stamp paper.

There maybe various other requirements that could change from time to time, but as mentioned above the easiest one would be one with a joint holder, while the most difficult one would be where there is no nomination and it is a single holder.

Read more about: mutual funds
Story first published: Wednesday, May 20, 2015, 13:23 [IST]
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