What documents do a nominee need to sell mutual funds?

Selecting a nominee is an important decision – be it for your bank account, investments or insurance policies. Nominating a person would ensure that the proceeds from your investments would be used for the intended purpose after you are gone.

For example, you are investing in an equity mutual fund scheme to fund your child’s college education. If something happens to you suddenly, your nominee will have the right to your investments. The nominee can take care of your investments or sell your investments at the right time to take your child’s college education.

However, the nominee need not be always well-versed in financial matters to take care of the whole exercise. That is why it is imperative that you should keep all the papers in order so that the nominee would not face any difficulty. Also, educating the nominee about the necessary paper work required to ensure a smooth transition would be a great idea.


Here is a quick video that explains the papers a nominee would require to liquidate the mutual fund investments.