Mutual Fund Nominations

 

Mutual Fund Nominations

Regulatory guidelines require investors to have a nominee for all their mutual fund folios, or inform the fund house they do not wish to have one by March 31. Else, their folios will be frozen for debits.

WHAT IS NOMINATION IN A MUTUAL FUND?

Nomination is the process of appointing a person to take care of your assets in the event of death. It is mandatory for new folios/accounts opened by an individual to make a nomination. In case investors do not wish to nominate, they can confirm it in the application form.

WHAT ARE THE BENEFIT OF REGISTERING A NOMINATION?

When a nomination is registered, it helps facilitate easy transfer of funds to the nominee (s) in thye event of demise or an investor. In the absence of a nominee, the heirs/claimant will have to produce a host of documents like a will, legal heir certificate, NOCs from other legal heirs etc. to get the units transferred in his/her name.

WHAT HAPPENS IF YOU DO NOT MAKE A NOMINATION BY MARCH 31, 2023?

If you do not make a nomination in your existing folio, the folio will be frozen or debits. This means you will not be able to switch for redeem investments in your existing folios until you submit the relevant details.

WHY ARE INVESTORS IN A HURRY TO PROVIDE NOMINATIONS DETAILS IN THEIR OLD MF FOLIOS?

Investors are in a hurry after markets regulator Sebi announced that all existing and new investors will need to have a nominations for the mutual fund units held buy them or opt out of the nominations facility altogether by the March 31 deadline. If a nomination is already there, no action is needed. For those holding units in demat form, the nominee for the demat account applies to your mutual fund holdings as well.

HOW TO MAKE A NOMIANTIONS?

Completion of nomination can be done by filling a physical form signed by all holders, or can be done online through websites of the register and transfer agents. Mutual fund unit holders can submit their nomination or the choice to opt-out in the specified format either with the fund houses, registrar, or the transfer agents within the due date specified for the same. In case the mobile numbers or email IDs of the second holder are not updated with the fund house, investors may have to do it by filling a form only.

For More Details: Pooja Manoj Gupta, visit www.giia26.com
Email: pmgiia26.com Mobile 9868944340