Mutual Fund Nomination Process

Here is the video that explains about Nomination process:

Video Transcript:

Sharmila: Hey Nirmal, Do you know what happened to Uma?

Nirmal: Don’t tell me something disturbing!!!

Sharmila:  I wish I would not but she lost her father.. very sad.. the painful part is that when she is mourning, she is running around to do the paper work to claim his investments.

Nirmal: Are you telling me he did not nominate anyone? Not very surprising!!!! Even the most-savvy investors forget to nominate. Nomination is a simple way to allow the family to access one’s investments when the person is no more.

Sharmila: Are you saying that Uma would have had less or No trouble, had her father nominated her?

Nirmal : Yes, indeed!

Sharmilla : Nirmal, I know that you are an avid investor in Mutual Funds. My husband also keeps investing in mutual funds but you know he is not as methodical as you are. I think I would take control of all the paper work on our Mutual Fund investments.
Can you please give me some inputs on “Nomination”?

Nirmal : Certainly Sharmila. It’s quite simple”

Nirmal : There is a SEBI prescribed nomination form which can be downloaded from www.camsonline.com.”This easy to fill form can be submitted at any of CAMS Service Centers for registration of nominee. Only Individuals like you and I can nominate.

Nirmal: Nomination can be made for maximum number of three nominees.

In case of multiple nominees, the percentage of allocation/share in favour of each of the nominees should be indicated against their name. Such allocation/share should be in whole numbers without any decimals making a total of 100 percent.
Example

N1 : 30%

N2 : 35%

N3: 35 %

Nirmal: Sometimes, investors submit nomination with multiple nominees without mentioning the percentage allocation. In this case, mutual funds shall settle the claims equally among the nominees.

Sharmila : Oh that’s nice. My children are only 12 and 8. Can they be nominated?

Nirmal : Certainly Sharmila. Minors can very well be nominated and can even be allotted equal share on par with majors.

Sharmila : Nirmal, I think we have investments in multiple mutual funds. Do we have to register nominee with each one of them?

Nirmal : Yes, Sharmila. Ram will have to nominate in each of the account where he has invested.” “After registration, the mutual fund will send a confirmation of registration of nomination, which may be kept safe for future reference.
Sharmila: Is the nomination cast in stone that once it is made it cannot be changed?
Nirmal: Not at all. It can be changed. Ram can use the same form for cancellation of the existing nomination and do a fresh registration for nominating anyone else or changing the allocation.

Sharmila: Nirmal, I must say that I am going back home quite relieved.
Now I only have to get Ram to complete this simple procedure and be at peace.

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Published by

Sudarshan Ranganthan

Breaths Investments, Suggests Wealth Creation Ideas, Lives on Law Of Attraction

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