Ameya

Last Updated: 14-Nov-2025

Mutual Funds investments after passing away of parents

Claim Process: If No Will Exists @ aasaanwill.com

The nominee again follows the simplified process using the death certificate and KYC to receive the units.

However, since there is no will, the legal heirs must establish rights according to personal succession laws:

• Hindus under the Hindu Succession Act, 1956

Heirs can approach the nominee and request a transfer of assets or settle disputes legally.

This way, nominee registration ensures quick transfer for record purposes, while succession laws decide the actual ownership based on whether a will exists or not.

Hindu Succession Act, 1956 @ indiacode.nic.in

• Section 1

  1. This Act may be called the Hindu Succession Act, 1956.
  2. It extends to the whole of India 1.

• Section 10 Link

  Rule 2.―The surviving sons and daughters and the mother of the intestate shall each take one share.

Claim Process @ Groww.in

Process to Claim Mutual Funds After Death of Investor

Given below is the step-by-step process to claim mutual funds after the the death of investor:

• Contacting Fund Houses: The first step that a joint account holder, nominee, or legal heir has to do is to contact the fund house where the deceased investor held his/her investments. Since investments could be spread across several folios, it is necessary to contact the respective fund house for the same.
• Document Submission: After contacting the fund house, the claimant must send a formal request for the transmission of the mutual fund units. The claimant must submit all the required documents and should adhere to the guidelines of the fund house to complete the transmission process on time.
• Division Process for Multiple Claimants: In the case of multiple legal heirs or nominees, the mutual fund investment will be divided as per the instructions listed in the will of the deceased investor. In the absence of a valid will, the mutual fund units will be divided equally among the eligible claimants.
• Tax Implications: A claimant must know the tax implications of the transfer of mutual fund investments. The transmission of mutual fund units from the deceased investor to the claimant does not attract any capital gains tax. However, any gains following the sale of these units or through receipt of dividends will be subject to taxation.