What will happen to my mutual fund investment if I die?

Humans are mortal but the mutual funds aren’t. After the death of an investor, a nominee or joint holder or the legal heir can claim the mutual fund units by submitting original documents to the AMCs in which the investors has made the investment.

Below are the list of documents that will be required to produce for transferring the units-

• A letter in an AMC specified format requesting to transfer the mutual fund units.
• Death certificate of the investor (original/notarised/attested photocopy).
• KYC complaint of the claimant.
• A new Bank mandate (as per the specified format of AMC) duly attested by the manager of branch or produce a blank cheque containing the account number and holder’s name or bank account statement.
• FATCA self-certification.

In short, you need not to worry about the invested amount. The units will be transferred to the nominee who will become the new holder of the units after death.

Mutual Fund application form has a section asking the name of nominees. After the death of an investor, the units will be transferred to the nominee after displaying certain documents such as death certificate, etc. Money in mutual funds are always safe, no matter if you are alive or dead.