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What is nomination?
A nominee is the person who will receive your mutual fund units if you die. SEBI's rules now let you name up to 10 nominees in a folio and set each one's share.
How it works
Adding nominees spares your family months of paperwork. You can also opt out of nomination by a declaration, but that makes claims harder. Nominees receive the units; a will still decides who finally owns them.
Nominations can usually be added or changed online with the fund house or registrar.
Example
You name your spouse for 60% and your child for 40%. On a claim, the units are transmitted to them in that ratio.
Keep in mind
- Update nominees after marriage, a birth or a death in the family.
- Add nominees to every folio, demat account and bank account.
Questions people ask
Is a nominee the legal owner?
Not necessarily. The nominee receives the units, but the legal heirs under a will or succession law are the final owners.
How many nominees can I add?
Up to 10 per folio under SEBI's current rules.
Related terms
General information for education, not investment advice or a recommendation of any scheme. Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Past performance may or may not be sustained in future. Last reviewed 25 October 2026.