Your mutual fund accounts may get frozen if you do not submit your mutual fund nomination by March 31, 2023. Let us know all the important things related to mutual fund nomination.
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Your mutual fund accounts may get frozen if you do not submit your mutual fund nomination by March 31, 2023. The regulatory guidelines require investors to specify their nominee for their fund folios or inform the fund house whether they wish to opt-out of nomination by the end of this financial. Let us know all the important things related to mutual fund nomination.
What is Mutual Fund Nomination?
In case of death in nomination, a person has to nominate a person to take care of the person’s assets. It is mandatory for new folios or accounts opened by investors to make nominations. If an investor does not want to make a nomination, he can opt out of the process while filling the form.
What are the benefits of making nomination?
When the nomination is registered, it helps in easy transfer of funds to the nominee, in case of death of the investor. In case the nominee is not present, the heir or the person desiring to claim will have to bring documents like Will, Certificate of Legal Heir, NOC from other legal heirs etc. Only after this they can get these units in their name.
What happens if you don’t do it by the March 31 deadline?
If you do not make a nomination in your existing folio, the folio will be frozen, which means investors will not be able to switch or redeem investments.
How to make nomination?
In case you have opened the account through offline mode and have not updated the nominee, you can do so by filling up the nomination form, signing it and submitting it to the Registrar. If you have opened a mutual fund account online, check your mutual fund statement and see if the nominee is mentioned in the folio.
Existing investors of mutual funds can submit their nomination on the investment platform through two-factor authentication. For accounts opened through offline mode, the individual has to fill in the nomination form, sign it and then submit it to the Registrar or Transfer Agent or Mutual Fund House.