Nomination in Financial Planning: Ensure Seamless Asset Transfer with Expert Nomination Strategies
14 Mar 2024
Nomination In Mutual Funds
Nomination holds paramount importance in financial planning as it serves as a vital component for the seamless transfer of assets in the event of the account holder's demise. By nominating an individual, the account holder ensures that the designated person receives custody of the assets residing in the account without undue delay.
All You Need to Know About Nomination
- Designate a person, usually family member, to be a custodian of your mutual fund assets in case of untimely demise.
- As per new guidelines of SEBI. Investors can either choose a nominee/s or opt out of the nomination but authorising this through digital (OTP) or physical (vetting the signature) mode is mandatory.
- Up to three nominees can be appointed in a mutual fund folio, with specified percentages for each in case of the unit holder's death.
- Appointing a nominee streamlines asset transfers and can potentially avoid complications.
- Investors have the flexibility to modify their nomination details through the respective Registrar and Transfer Agents (RTA), ensuring that at different point of times their chosen beneficiaries accurately reflect in their accounts.
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. The information provided is generic in nature and is for informational purpose only. Please consult your financial advisor before taking any decision.
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