How-to nominee update MF folio

How to update nominee on mutual fund folio

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Updating the nominee on MF folio ensures the right person inherits your investments. Each folio is updated separately. Multi-nominee allocation (up to 3 nominees with percentage split) lets you distribute among multiple beneficiaries.

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Step-by-step procedure

See the procedure infobox above.

Why update nominee

TriggerFrequency
Marriage / spouse changeOnce-in-lifetime typically
Birth of childAdd child as nominee
Death of existing nomineeReplace immediately
DivorceRemove ex-spouse
Family circumstances changePeriodic review

Best practice: review nominees every 5 years or after major life events.

Multi-nominee allocation

Per SEBI:

  • Up to 3 nominees per folio.
  • Each nominee gets specified percentage of units.
  • Totals must equal 100%.

Example:

  • Spouse: 50%.
  • Son: 25%.
  • Daughter: 25%.

Eliminates the inheritance dispute by pre-deciding allocation.

Multi-AMC update via MFU / MF Central

For investors with folios across many AMCs:

  • MFU’s eCAN: bulk nominee update.
  • MF Central: cross-AMC view + per-folio update.

Saves operational time.

See also

External references

References

  1. SEBI (Mutual Funds) Regulations, 1996.
  2. AMFI Best Practice Guidelines on nomination.
  3. Banking Regulation Act provisions on nomination.

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The WebNotes Editorial Team covers Indian capital markets, payments infrastructure and retail investor procedures. Every article is fact-checked against primary sources, principally SEBI circulars and master directions, NPCI specifications and the official support documentation published by the intermediary in question. Drafts go through a second-pair-of-eyes review and a separate compliance read before publication, and revisions are tracked against the SEBI and NPCI rule changes referenced in the methodology section.

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