Nomination – Mutual Fund
How to add or change a nominee in your mutual fund portfolio
Why is nomination important?
Nomination is a process where you assign your trusted family members or friends to take charge of your assets after you pass on. Nomination doesn’t mean bequeathing your assets to that person. It just means you are entrusting your assets to someone who would be in charge of making sure that your money gets passed on to the right person.
Who can be your nominee?
Stick to people you trust. They can be your siblings, your close family members, your friends or associates. You can also nominate local authorities or a charitable or religious trust
Can I appoint a minor as a nominee?
You can appoint your minor child as your nominee, provided you mention her date of birth and also appoint a guardian. You have to clearly specify the name of the guardian and his address in the nomination form, failing which such a nomination is considered invalid.
But if you invest in your minor child’s name, then you cannot appoint a nominee.
Can you change your nominees later in an existing folios?
Yes, you can modify, and do so as many times as you want. There is a form that you need to fill. You can either replace multiple nominees or just a single nominee from your existing list. In the case of multiple ‘joint’ holders or ‘Anyone (OR) Survivor’ in the folio, all investors need to sign the nomination change form.