Nominee

Each folio can carry a nomination. If the holder dies, the fund house transfers the units to the nominees after checking the death certificate and the nominees' KYC, without asking the family for a succession certificate or probate.

The basics:

• You can name up to 10 nominees and set each one's share, in percentages that add up to 100.
• A nominee can be any individual, such as a spouse, parent, child or sibling. A minor nominee is named with a guardian.
• You can change nominees at any time, and the latest nomination applies.
• In a joint folio, the units first pass to the surviving holders. The nominees receive them after the last holder dies.

You can also opt out of nomination by a signed declaration. Without a nominee, the family has to prove its claim with legal documents, which takes much longer.

A nominee receives the units, but who finally owns them can still depend on a will or on succession law.

Mutual fund nominee shows how to add or change one.