Everything You Need to Know About Transferring Mutual Fund Units
Most of us engage in investment planning with mutual funds to create a better life for our families. But as you strive to meet your financial planning needs, you must ensure that your investments will be transferred to your loved ones if something were to happen to you.
Apr 2023
3 mins read
Share:
Most of us engage in investment planning with mutual funds to create a better life for our families. But as you strive to meet your financial planning needs, you must ensure that your investments will be transferred to your loved ones if something were to happen to you. Indeed, one of the most important steps in investment planning is to nominate a person who will claim those mutual funds in the event of the investor’s demise.
This process is known as transfer or transmission of mutual funds, where the mutual fund units held by the deceased holder are transferred either to the surviving unitholders or to the nominated members. Most asset management companies (AMCs) follow the broad guidelines laid down by the Association of Mutual Funds in India regarding transmission. There may be slight variations in the processes or documents from AMC to AMC, but the process broadly remains the same.
It’s important to understand the nomination rules to create a successful investment planning strategy. In particular, you must gather the right documents for each situation:
- Transmission of units to the registered nominee in case of death of sole or all unitholders:
- Letter from the claiming nominees to the AMC requesting transmission of units
- Original or photocopy of the death certificate, duly notarised or attested by a gazetted officer or bank manager
- Bank account details of the claiming nominee or account holder, attested by a bank branch manager OR a cancelled cheque/ bank statement/ passbook with the account holder’s name and details
- KYC details of the claimant
- Transmission of units to surviving unitholders in case of death of the 1st holder:
- Transmission Request Form (Form T2) for transmission of units to all surviving unitholders
- Original or photocopy of death certificate of the deceased unitholders, duly notarised or attested by a gazetted officer or bank manager
- Copy of PAN card of the surviving joint holder
- Cancelled cheque of the 1st holder with the name of the claimant OR a bank statement/ passbook of the 1st holder (not more than 3 months old)
- KYC form of the surviving holders
- Transmission of units to surviving unitholders in case of death of the 2nd/ 3rd holder:
- Transmission Request Form (Form T1) requesting deletion of name of deceased 2nd or 3rd holder
- Original or photocopy of death certificate of the deceased unitholders, duly notarised or attested by a gazetted officer or bank manager
- Fresh bank mandate form, along with cancelled cheque of new bank account (in case there is a change in the bank mandate)
- Fresh nomination form in case of no existing nomination or change in existing nomination
- KYC form of the surviving holders
- Transmission to claimant in case the nominee hasn’t been registered:
- Transmission Request Form (Form T3) for transmission of units to the claimant
- Original or photocopy of death certificate of the deceased unitholders, duly notarised or attested by a gazetted officer or bank manager
- Copy of birth certificate in case the claimant is a minor
- Copy of PAN card of the claimant or guardian if the claimant is a minor
- Cancelled cheque with the name of the claimant OR the bank statement/ passbook of the claimant (not more than 3 months old)
Additional documentation required:
- For transmission up to Rs. 2 lakh:
- Signature of claimant with bank attestation by the branch manager, or signature of the guardian in case the claimant is a minor
- Relevant documents proving the claimant’s relationship with the deceased
- Bond of Indemnity to be furnished by legal heirs for transmission of units without production of legal representation
- Individual affidavits by each legal heir
- NOC from other legal heirs
- For transmission more than Rs. 2 lakh
- The claimant’s signature attested by a notary public or a Judicial Magistrate First Class (JMFC), or the signature of the guardian in case the claimant is a minor
- Individual affidavits to each legal heir
- Any of the following documents – notarised copy of the probated will; succession certificate issued by a court; or a letter of administration or court decree, in case of intestate succession.
Assigning a nominee is essential for smart financial planning. It’s equally important to ensure your nominee or legal heirs are the same page about your investments, and there is a clear plan for your investments in the event of your demise. This will ensure that your hard-earned money is not squandered and you leave behind a strong financial legacy for your loved ones.
Disclaimer: Mutual fund investments are subject to market risks, read all scheme-related documents carefully
Share:
PGIM India Asset Management Private Limited
(CIN - U74900MH2008FTC187029)
Toll Free Number: 1800 266 7446
Email: care@pgimindia.co.in
This is an Investor Education and Awareness Initiative by PGIM India Mutual Fund.
All the Mutual Fund investors have to go through a one-time KYC (Know Your Customers) process. Investor should deal only with the Registered Mutual Funds (RMF). For more info on KYC, RMF and procedure to lodge/redress any complaints, visit https://www.pgimindiamf.com/ieid.
MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY. Read more
All the Mutual Fund investors have to go through a one-time KYC (Know Your Customers) process. Investor should deal only with the Registered Mutual Funds (RMF). For more info on KYC, RMF and procedure to lodge/redress any complaints, visit https://www.pgimindiamf.com/ieid.
MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY. Read more
The information contained herein is provided by PGIM India Asset Management Private Limited (the AMC)
on the basis of publicly available information, internally developed data and other third-party
sources believed to be reliable. However, the AMC cannot guarantee the accuracy of such information,
assure its completeness, or warrant such information will not be changed. The information contained
herein is current as of the date of issuance* (or such earlier date as referenced herein) and is
subject to change without notice. The AMC has no obligation to update any or all of such
information; nor does the AMC make any express or implied warranties or representations
as to its completeness or accuracy. There can be no assurance that any forecast made
herein will be actually realized. These materials do not take into account individual
investor's objectives, needs or circumstances or the suitability of any securities,
financial instruments or investment strategies described herein for particular investor. Hence,
each investor is advised to consult his or her own professional investment / tax advisor / consultant for advice in this regard.
The information contained herein is provided on the basis of and subject to the explanations, caveats and warnings set out elsewhere herein.
The views of the Fund Manager should not be construed as an advice and investors must make their own investment decisions regarding investment/ disinvestment in securities market and/or suitability of
the fund based on their specific investment objectives and financial positions and using such independent advisors as they believe necessary.
