Queries regarding the nominee registration procedure in mutual funds
What does the nomination facility in mutual funds imply?
Nomination facility is offered for the transfer of mutual fund units in case of the unfortunate demise of the unit holder. Nomination facility is mandatory for new folios/accounts opened by individuals, especially with single holdings. No new folios/accounts for individuals in single holdings are allowed without nomination.
What happens to existing investments without nomination?
In case the existing investments are without a nomination, the AMC will send a request for registering a nominee to the investors through various modes i.e. letters, e-mails or text messages.
Can an investor choose to stay away from nomination?
If your investor does not wish to nominate someone, he must separately sign an application confirming his/her non-intention to nominate.
Can a nomination be made for a folio held on behalf of a minor?
Investor is not allowed to hold a folio nomination on behalf of a minor.
What about nomination in folios held by joint holders?
Your investors need to sign the request for a nomination form, irrespective of the mode of holding. Nomination forms cannot be signed by Power of Attorney (PoA) holders.