Updating your nominee, and how many you can name
Adding or changing a nominee takes one form or one online request per folio. The rule on how many nominees you can name changed in 2026: it is now up to three.
A nominee is the person your units pass to if you die. Nomination is recorded per folio, so updating it is a short request for each folio you hold. This page covers the current rules and the two ways to do it.
How many nominees you can name
From 1 September 2026, a mutual fund folio can carry up to three nominees. This comes from a SEBI circular dated 29 May 2026, which replaced the January 2025 circular that had allowed up to ten. If you read about a ten-nominee limit, that is the older rule.
- Folio in one name: the holder either names a nominee or formally opts out of nomination. One of the two is needed.
- Joint folio: nomination is optional, and when one is made, all joint holders consent to it.
Splitting between nominees
With more than one nominee, you can state each one’s share as a percentage. If you do not, the units are split equally, and any odd unit left over goes to the first nominee.
Updating online
An online request is authenticated in one of three ways: a digital signature certificate, Aadhaar-based e-sign, or a one-time password sent to the mobile number and email address registered on the folio. That last point is why current contact details matter: an OTP that goes to an old number cannot be used.
Updating on paper
The nomination form is signed by the holder (every holder, for a joint folio) with a normal signature. No witness is needed — unless the form is signed with a thumb impression, in which case two witnesses sign.
Checking it went through
Each change is acknowledged, and your statement of account shows the nominee names, or a simple Yes/No on nomination status. You can change a nomination any number of times. Because nomination sits on each folio, it helps to check every one: the Consolidated Account Statement lists them all, and merging folios leaves fewer to keep current.
A nominee is not an heir
The nominee receives the units as a trustee for the legal heirs. Nomination decides who the fund house pays, quickly; it does not decide who ultimately owns the money. A will deals with that. What happens on a claim is on After a death: claiming mutual fund units.
Source: SEBI circular SEBI/HO/OIAE/OIAE_IAD-3/P/CIR/2026/12676, 29 May 2026 (effective 1 September 2026); SEBI transmission circular of 23 July 2026.
This is education, not advice
This article explains categories and mechanics. It does not name a scheme, does not rank anything and does not tell you what to buy. H2 Investment is an AMFI-registered mutual fund distributor (ARN-200996), not a SEBI-registered investment adviser. For a personal financial plan, talk to a SEBI-registered investment adviser. Tax treatment depends on your own circumstances and the rules change — confirm your position with a qualified tax adviser.
Related
Nominee questions, answered
How many nominees can I add to a mutual fund folio?
Up to three, from 1 September 2026, under a SEBI circular of 29 May 2026. The earlier limit of ten, from January 2025, no longer applies.
Does a nomination form need a witness?
Not if you sign it. Two witnesses are needed only when the form is signed with a thumb impression.
Can I change my nominee later?
Yes, any number of times. Each change is acknowledged and shows on your statement of account.
Is a nominee compulsory?
For a folio in one name, you either name a nominee or formally opt out. For a joint folio, nomination is optional, and all joint holders consent to one.
H2 can do this paperwork with you
Nomination forms for every folio you hold, in one sitting. Tell us which folios and we will take you through each one.