Mutual Fund: If a person investing in a mutual fund suddenly dies, how will the nominee claim his money?

Nowadays, many people invest in mutual funds. In mutual funds, you get the option of investing both in SIP and Lumpsum. If you invest in this scheme for a long time, you can create a huge fund. But have you ever thought that if a person investing in mutual funds suddenly dies, what will happen to his money? Does this money get stuck or can it be claimed? Know important information about this.

Who claims after the death of the investor?
If the mutual fund is a joint account, then after the death of the first investor, his entire investment is transferred to the remaining holder. But if both die, then the nominee has the right to claim it. Whereas in a single account, after the death of the investor, the nominee can claim the money. If the nominee is not mentioned, then the legal heir can also claim.

How to claim

To claim for mutual funds, the nominee or successor will have to contact the fund house in which the money was invested. The company may ask you to submit some important documents. In such a case, a transmission request form, death certificate of the deceased, Aadhaar and PAN card of the claimant, bank details, etc. have to be given. If the nominee is a minor, then his birth certificate and KYC documents of the guardian will have to be given. On the other hand, if the successor is making the claim instead of the nominee, then apart from the other necessary documents, he may also have to give a succession certificate or a copy of the will, indemnity bond, and personal affidavit.

Mutual funds are market-linked schemes.

Let us tell you that mutual funds are market-linked schemes. There is no guarantee of returns in this scheme, but still, it has become increasingly popular. Most financial advisors also recommend including mutual funds in their portfolio. This scheme is considered to be slightly less risky than investing in direct stocks because it offers the benefit of diversification. Experts believe that this scheme has the potential to beat inflation.

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