Nominee refers to an individual or a firm who is mentioned as the beneficiary or the custodian on the behalf of another person. In the event of an unfortunate event such as death of the original owner, the said assets, securities or investment get transferred to the nominee.

Many investment firms including mutual fund houses have made it compulsory for investors to assign a nominee to their accounts. Investors have the option to add multiple nominees to one account, scheme or asset and allocate the weightage or proportion of distribution.