Learn with ET Mutual Funds: Transmission of mutual fund units

The need to transmit mutual fund units arises in case of the unit holder's death. The process of transmission of mutual fund units is easy if all the necessary documents are in place. If the units were held across a number of fund houses, you may have to submit separate requests to each fund house for the transmission of the units.

How does one transmit units?
If the first holder of the mutual fund units passes away, the units are transmitted to the second holder. In case there is only one holder, the units are transmitted to the nominee. The second holder or nominee must submit a letter informing about the death of the first unit holder to the AMC, along with the death certificate, KYC FATCA details and bank account number .


Some fund houses insist that the bank details of the second holder or the nominee be certified by the bank concerned.

Legal documents you might need?
If there are surviving unit holders, the fund house will not ask for any legal documents other than the ones mentioned above. But if the nominee stake a claim to the investment, the fund house will ask for some legal documents. In addition to the above documents, the nominee needs to provide an indemnity certificate. Each fund house may have a different format for this certificate.

How much time does it take?
On receipt of necessary documents, the fund house might take around five to ten working days to get the transmission done.

What if the mutual fund units are in demat form?
Many investors buy mutual fund units in demat form through stock exchanges. In the event of death of one of the joint holders, the mutual fund units will be transmitted to the surviving holder. The surviving holder needs to produce the death certificate and an account closing form. The new account where the mutual fund units need to be transmitted must be in the same sequence as the surviving holder. If such an account in not available, the surviving unit holder will need to open a new depository account.