Your investments may be digital. But transferring them isn’t automatic.

A client’s spouse once called after he passed unexpectedly:

Another case involved a father who had invested diligently—but never updated his nominee.

The family waited over 8 months in legal queues just to access ₹6 lakhs.

Mutual funds don’t automatically pass to your loved ones.

They follow a process—and that process depends on how well-prepared you were.

Let’s break down what happens to your mutual fund investments when you pass away, and how to avoid unnecessary stress for your family.

Step 1: Nominee = First Line of Access

Every mutual fund investment allows you to register a nominee—a person who can claim your investment in case of death.

✅ If nominee is registered and documentation is clean:

• Claim process takes ~7–10 working days

• Funds are transferred to nominee’s bank account

❌ If no nominee:

• Legal heirs must submit succession certificate or probate

• Claim process can stretch over months

👉 Always register a nominee—and keep it updated.

Step 2: What Nominees Must Submit to Claim

Basic documents:

• Death certificate (original or notarized copy)

• KYC documents of nominee (PAN + address proof)

• Claim form from the AMC

• Bank account proof (cancelled cheque)

If nominee is minor:

• Guardian will claim on behalf

• Additional documentation will be needed

💡 Pro tip: Keep a “Mutual Fund Dossier” with folio numbers, fund names, and contact info—accessible to family members.

Step 3: Joint Holdings vs Single Holding

If your mutual fund account is:

• Jointly held (either or survivor): surviving holder becomes sole owner

• Singly held with nominee: nominee can claim

• Singly held without nominee: legal route needed

Many investors forget to specify joint holdings or skip nomination entirely.

Both increase complexity later.

Step 4: What Happens in a Demat/Online Platform Setup?

If you invest through:

• Zerodha, Groww, Paytm Money, or CAMS/MyCAMS:

Your mutual funds are typically in demat or consolidated folios.

The claim process is slightly different:

• Nominee must claim through broker/platform

• May need to go through NSDL/CDSL claim channels

• PAN, bank, and nominee KYC must match

Even digital investors should store folio/portfolio snapshots offline with family.

Step 5: What If You Own Mutual Funds Through Your Business?

In rare cases, business owners invest from business accounts.

In such cases:

• The company owns the fund, not you

• Claims go via board resolutions and business succession processes

• Not suitable for personal wealth planning

👉 Always keep personal investments separate from business accounts.

TL;DR – Too Long; Didn’t Read

• If you pass away, mutual funds go to your nominee—if registered.

• No nominee? Legal process kicks in and delays access.

• Always update your nominee, folio details, and keep a record your family can access.

• Joint holding helps, but nomination is faster.

• Don’t mix business and personal mutual fund accounts—it complicates inheritance.

Your SIPs may be set on autopilot.

But your succession plan can’t be.

Take 30 minutes today to review:

✅ Your nominees

✅ Your folios

✅ Your documentation

Because wealth that’s inaccessible in crisis is as good as invisible.