An investor can nominate a person called nominee to whom his Mutual Fund Units will be transferred on his / her demise. Mutual Fund Units get transferred to the nominee registered in the folio on the demise of the Investor.
Nomination ensures all rights and /or amount(s) payable in respect of the holdings in Schemes of Mutual Fund would vest in and be transferred to the nominee upon death of the Unit holder. The nominee receives the units only as agent and trustee for the legal heirs or legatees as the case may be. Investors should opt for the nomination facility to avoid hassles and inconveniences in case of unforeseen events in future.
A minor can be nominated and in that event, the name and address of the guardian of the minor nominee shall be provided by the unit holder.