How to claim mutual fund investments of the deceased?

We constantly try to save and invest our earnings in multiple ways to ensure a comfortable future for our family and loved ones. Many people have a full proof investment plans up to their retirement. But death, as we know it, is not only inevitable but unpredictable too. So, what happens to savings when the person dies? How can their loved ones claim it?

In a recent episode of Money9 Helpline, a viewer expressed concern about getting access to his deceased father’s mutual fund investments.

“I lost my father due to Covid-19. I have received the insurance claim. He used to invest in mutual funds and the stock market, which I have no idea about what should I do?” Maulik Saini from Gujarat asked.

As per the law, either the joint holder in the portfolio or nominee or legal heir mentioned in the will can claim the mutual fund proceeds through a process called ‘transmission’.

Role of AMC

As per the law, either the joint holder in the portfolio or nominee or legal heir mentioned in the Will can claim the mutual fund proceeds through a process called ‘transmission’. Kshitiz Mahajan who is the co-founder of Complete Circle Consultants told Money9, “The process to claim mutual funds and shares is much easier than banks. You can access all the data set of investment through your father’s PAN card. You can visit any mutual fund house irrespective of the fact if your father had invested through it.”

Almost all mutual fund companies broadly share a common procedure for transmission of units. The format or list of documents might vary here and there but overall process is similar at most places.

MF claim process
The nominee or joint holder will have to submit an application to the MF house along with the following documents for transmission.