X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2018 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
What All You Need to Furnish For Transmission of MF Units? - Outside View by PersonalFN

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

What All You Need to Furnish For Transmission of MF Units?
May 30, 2015

The need to transmit mutual fund units arises in case of the death of the unit holder(s). Completing formalities can sometimes be a time consuming and exhausting process. However, having knowledge about the transmission process beforehand can save you a lot of time and effort during such testing moments.

Hence, PersonalFN has listed down the procedure which can help you to transmit mutual fund units in the following different scenarios.

  • In case of the death of the first unit holder

    If the first unit holder passes away, the units can be transmitted to the second unit holder. For transmission of units, the second holder will need to submit,

    • - A letter informing about the death of the first unit holder (in the format required by the fund house)
    • - Copy of the death certificate attested by the bank manager / gazette officer / asset management company
    • - The second unit holder's bank details (as specified by the fund house)
    • - KYC of the second holder

  • In case of the death of single or all holders (with nomination)

    If a unit holder (or all holders), who has appointed a nominee in his investment, passes away, the nominee will be eligible to get the units transmitted in his name. For doing so, the nominee will have to submit,

    • - A letter (in the format required by the fund house)
    • - Attested copy of the deceased's death certificate
    • - Bank details (as specified by the fund house),
    • - KYC of the nominee
    • - Indemnity (if the amount to be transmitted is equal to or greater than the threshold limit set by the AMC). For example, HDFC Mutual Fund requires nominees to provide indemnity (in a specified format) in case the transmission amount is in excess of Rs 5 lakhs per investor.

  • In case of death of the single or all holders (without nomination)

    If a unit holder (or all holders), who has not appointed a nominee, passes away, then the claimant will have to submit the following documents, apart from the ones mentioned above.

    • - Individual affidavits from the legal heir(s) (in the required format)
    • - Indemnity bond from the legal heir(s) (in the required format)
    • - If the amount to be transmitted is below the threshold limit set by the AMC then any appropriate document proving the relationship of the claimant with the deceased
    • - If the amount to be transmitted is equal to or greater than the threshold limit set by the AMC, then any one of these are required to be submitted - Notarized copy of the Probated Will, or Legal Heir Certificate or Succession Certificate or Claimant's Certificate issued by a competent court, or Letter of Administration, in case of Intestate Succession.

  • In case of the death of the Karta

    A Karta is the manager of the affairs of the Hindu Undivided Family (HUF). If the Karta passes away, then the newly appointed Karta will have to submit the following for transmission of units:

    • - Letter requesting for change of Karta (as per the specified format)
    • - Attested copy of the death certificate of the deceased Karta
    • - KYC of the Karta and of the HUF
    • - Indemnity bond signed by the new Karta and all the surviving coparceners
    • - Duly certified bank certificate stating that the signature and details of the new Karta have been appended in the HUF's bank account
    • - In case there are no surviving coparceners or there is an objection from any of the surviving coparceners, then any of these are required to be submitted - Notarized copy of Settlement Deed, or Notarized copy of Deed of Partition, or Notarized copy of Decree of the relevant competent Court

    Procedures for the transmission of mutual fund units may differ slightly from fund house to fund house. Hence, PersonalFN suggests that you shouldn't follow the aforementioned process blindly and confirm the same with all the fund houses whose units are required to be transmitted.
PersonalFN believes that it is imperative that everyone should have a nominee for all their investments and also have an appropriate will in place. Transition of wealth to the legal heir(s) of a person dying intestate (i.e. dying without valid will) may be a difficult task.

PersonalFN is a Mumbai based personal finance firm offering Financial Planning and Mutual Fund Research services.

Disclaimer:

The views mentioned above are of the author only. Data and charts, if used, in the article have been sourced from available information and have not been authenticated by any statutory authority. The author and Equitymaster do not claim it to be accurate nor accept any responsibility for the same. The views constitute only the opinions and do not constitute any guidelines or recommendation on any course of action to be followed by the reader. Please read the detailed Terms of Use of the web site.

Equitymaster requests your view! Post a comment on "What All You Need to Furnish For Transmission of MF Units?". Click here!

  

More Views on News

IIFL HOLDINGS Announces Quarterly Results (4QFY18); Net Profit Down 56.6% (Quarterly Result Update)

Jul 20, 2018 | Updated on Jul 20, 2018

For the quarter ended March 2018, IIFL HOLDINGS has posted a net profit of Rs 1 bn (down 56.6% YoY). Sales on the other hand came in at Rs 10 bn (down 27.3% YoY). Read on for a complete analysis of IIFL HOLDINGS's quarterly results.

EDELWEISS FINANCIAL Announces Quarterly Results (4QFY18); Net Profit Up 72.6% (Quarterly Result Update)

Jul 20, 2018 | Updated on Jul 20, 2018

For the quarter ended March 2018, EDELWEISS FINANCIAL has posted a net profit of Rs 2 bn (up 72.6% YoY). Sales on the other hand came in at Rs 26 bn (up 35.2% YoY). Read on for a complete analysis of EDELWEISS FINANCIAL's quarterly results.

TI FINANCIAL HOLDINGS Announces Quarterly Results (4QFY18); Net Profit Down 38.5% (Quarterly Result Update)

Jul 19, 2018 | Updated on Jul 19, 2018

For the quarter ended March 2018, TI FINANCIAL HOLDINGS has posted a net profit of Rs 446 m (down 38.5% YoY). Sales on the other hand came in at Rs 12 bn (up 5.5% YoY). Read on for a complete analysis of TI FINANCIAL HOLDINGS 's quarterly results.

IDFC LIMITED Announces Quarterly Results (4QFY18); Net Profit Down 110.9% (Quarterly Result Update)

Jul 19, 2018 | Updated on Jul 19, 2018

For the quarter ended March 2018, IDFC LIMITED has posted a net profit of Rs 147 m (down 110.9% YoY). Sales on the other hand came in at Rs 26 bn (up 2.5% YoY). Read on for a complete analysis of IDFC LIMITED's quarterly results.

HDFC Announces Quarterly Results (4QFY18); Net Profit Up 10.2% (Quarterly Result Update)

Jul 19, 2018 | Updated on Jul 19, 2018

For the quarter ended March 2018, HDFC has posted a net profit of Rs 40 bn (up 10.2% YoY). Sales on the other hand came in at Rs 212 bn (up 18.9% YoY). Read on for a complete analysis of HDFC's quarterly results.

More Views on News

Most Popular

How to Avoid a 90% Loss Suffered by This Super Investor(The 5 Minute Wrapup)

Jul 12, 2018

Blindly following super investors is a dangerous game to play. Here's how you can avoid such mistakes.

The Answer to Your Wealth Worries: Small Caps (Especially Now)(Profit Hunter)

Jul 10, 2018

If you're worried about the markets - you are on the wrong track. This is opportunity - put your wealth-building hat on, instead - Richa shows you how...

The Multiple Problems with the Minimum Support Price (MSP) System(Vivek Kaul's Diary)

Jul 11, 2018

The price signals that MSP sends out, creates its own set of problems.

ICICI Pru Mutual Fund Tarakki Karega! - The Unethical Way?(Outside View)

Jul 11, 2018

PersonalFN explains how ICICI Prudential Mutual Fund flouted the norms of related party transactions while subscribing to the IPO of ICICI Securities.

PPF v/s Mutual Funds: Which Is Better?(Outside View)

Jul 10, 2018

PersonalFN highlights the key points of distinction between PPF and mutual funds.

More

Small Investments
BIG Returns

Zero To Millions Guide 2018
Get our special report, Zero To Millions
(2018 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

MARKET STATS