Have You Chosen Your Nominee in Mutual Fund Investment!

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 is now mandatory for new folios/accounts opened by an individual especially with sole holding and no new folios/accounts for individuals in single holding would be opened without nomination.

Also refer

Where to see my Nominee Details in Mutual Fund Account Statements??

However, investors who do not wish to nominate must sign separately confirming their non-intention to nominate. Investor who don't want to mentioned nominee details need to sign declaration for not exercising the right of nomination in respect of units held by him/her.

 Registering a nomination facilitates easy transfer of Funds to the nominee on the unfortunate demise of the investor. In the absence of the nominee, a claimant would have to produce a host of documents like a Will, Legal Heir ship Certificate, No-objection Certificate from other legal heirs etc. to get the units transferred. The process is simple if a nominee is registered in the folio.

 
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. 

Terms and conditions related to Nomination

 The nomination can be made only by individuals applying for / holding units on their own behalf singly or jointly.    In case a folio has joint holders, all joint holders should sign the request for nomination/cancellation of nomination, even if the mode of holding is not "joint". 
 

Every new nomination for a folio/account will overwrite the existing nomination.

An investor may make up to three nominations and even specify the percentage of the amounts that will go to the nominee. If the percentage is not specified, equal shares will go to the nominees.

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.


Nomination form:

Wef 1st April 2011, Nomination details in mutual fund Investments is mandatory

With effect from 1st April 2011, Nomination details in mutual fund Investments is mandatory for new investments in mutual funds (creating new folio) In case you don't wish to add a nominee, you need to submit
a declaration confirmation about your non-intention of nominee

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Nomination by a unit holder shall be applicable for investments in all schemes in the folio
or account.
ii. In case a folio has joint holders, ALL Joint holders should sign the request for
nomination/cancellation of nomination, even if the mode of holding is not "Joint".
iii. Every new nomination for a folio/account will overwrite the existing nomination.
iv. Nomination shall not be allowed in a folio held on behalf of a minor.
v. Investors who do not wish to nominate must sign separately confirming their nonintention
to nominate.
vi. Nomination by a unit holder shall be applicable for investments in all schemes in the folio.
vii. Nomination form cannot be signed by Power of Attorney (PoA) holders.

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