How to Update Your Mutual Fund Nominee Online

Your Mutual Fund investments need to have a nominee attached to them. This is important because in the unfortunate event of your demise, your nominee can access the investments without any hassle. In this blog post, we will learn the importance of having a nominee and how to update a nominee online against your Mutual Fund investments.

Understanding the Importance of Updating Nominee Details in Mutual Funds

Many investors nominate a person at the time of investment and later forget to update the details. It is critical to check and update nominee(s) when you get married, have children or your priorities change. Having updated nominee details ensures that the investments are transferred to the right person, if required, in the future.

Here are the key reasons why you must choose to add / update a nominee in Mutual Funds:

1. Helps With Financial Security for Dependents

Adding a nominee for your Mutual Fund holdings ensures safety in the long run. It makes sure that in the unfortunate event of your demise, the nominee can easily access the accumulated Mutual Fund investments without any delays.

2. Protects From Legal Complications 

Another key benefit of having a nominee is that your loved ones can avoid any type of legal complications that might occur later. If the nominee details are not updated, then the legal heirs might have to provide additional documents to claim the investments.

3. Avoids Disputes Among Legal Heirs

Mentioning a nominee prevents disputes over asset distribution among family members after the demise of the investor. Investors can also specify percentage allocations if there are multiple nominees. 

4. Saves Time and Effort for Family Members

Having updated nominees eliminates the need for legal formalities and ensures a smooth transfer of Mutual Fund holdings to the intended beneficiaries. 

How to Update Nominees in Mutual Funds Online through iMobile?

Investors can update nominee details for their Mutual Fund investments online through iMobile in a few simple steps as mentioned below. 

• Log into iMobile

• Go to Invest > Mutual Funds

• Select ‘Services’ in the bottom toolbar

• Click on ‘Update Nominee Details’

• Enter OTP

• Select the folio for nominee updation and enter the nominee name, relationship & other details.

Updating Mutual Fund Nominee via the Mutual Fund website

To update a nominee in a Mutual Fund folio, log into the official website of the respective Mutual Fund and navigate to the nomination section. Select the option to update or add a nominee, then enter the required details such as name, relationship and percentage share. Verify and submit the changes. You should retain the confirmation for future reference.

Who Can Be a Nominee in a Mutual Fund?

An investor can appoint any individual as a nominee, including:

• Spouse, children, parents or other family members 

• Friends or acquaintances 

• Non-Resident Indians (NRIs) 

• Minors (provided a guardian’s details are included).

Entities That Cannot Be Appointed as Nominees

• Hindu Undivided Family (HUF) 

• Companies, partnership firms or societies 

• Non-religious and non-charitable trusts.

What Happens If Nominee Is Not Updated?

If an investor has not nominated anyone or has outdated nominee details, their legal heirs will have to undergo additional legal processes to claim the Mutual Fund investments. The Mutual Fund house may require the following documents: 

• Death certificate of the investor 

• KYC documents of the legal heir 

• Succession certificate or a notarised will 

• Indemnity bond signed by all legal heirs.

Without a nominee, the legal process can be lengthy and complicated, causing unnecessary difficulties for family members. 

Key Considerations to Remember When Updating a Nominee

Below are some key things that you must remember when updating your nominee details:

• Update nominee details after significant life events such as marriage, divorce or the birth of children

• Ensure nominee details match the details mentioned in the will to prevent legal conflicts

• Specify percentage allocation if multiple nominees are appointed

• Choose a reliable and trusted individual as a nominee to avoid misuse of funds

• Use online methods for a quick and hassle-free update.  

Conclusion

Updating nominee details in Mutual Fund investments is a crucial step to ensure the smooth transfer of investments to the intended beneficiary. ICICI Bank provides convenient options for investors to update nominee details via the iMobile app.  

Investors who have not yet completed the addition / updation of their Mutual Fund nominee should do so promptly to secure their financial legacy for their loved ones. Taking proactive steps now can prevent complications in the future.  

For disclaimer, Click here