Investing in Mutual Funds Made Easy: Essential Information You Must Understand
Updating Mutual Fund Nominees: A Simple Guide
Managing your mutual fund investments just got easier, thanks to the option to update your nominee details online. Here's a step-by-step guide on how to do it.
Step 1: Log in Start by logging into your mutual fund account via the investment platform, registrar website, or mobile app.
Step 2: Navigate to the profile or nominee section Once you're logged in, navigate to the profile or nominee section.
Step 3: Change or update nominee details Select the option to change or update nominee details.
Step 4: Enter new nominee details Next, enter the new nominee's details, including their name, date of birth, relationship, and if the nominee is a minor, provide guardian details.
Step 5: Complete the verification To ensure the security of your account, you'll need to complete the verification. This is usually done via OTP sent to your registered mobile number or e-sign using Aadhaar.
Step 6: Submit the request Finally, submit the request. The nominee details will typically get updated within 1 working day in the folios and records.
In some cases, if the nominee update request fails online, you may need to submit a scanned self-signed request form and supporting documents like PAN card copies offline. This process can take 10-13 working days to update across folios.
It's important to note that this online nominee update process does not usually require employer approval and provides faster settlement benefits in case of unforeseen events.
The Importance of Proper Nomination Proper nomination ensures that your mutual fund units are passed on to the rightful heirs without delay. It's crucial to select the nominee with utmost care, enter their correct details, and update the nominee at every major life event.
Remember, nominations can be made in favor of the Central Government, State Government, a local authority, any person designated by his/her office, or a religious or charitable trust. However, trusts (except for religious or charitable trusts), societies, companies/body corporate, partnership firms, or HUF (Hindu Undivided Family) cannot be added as a nominee.
Non-resident Indians (NRIs) can be added as mutual fund nominees, subject to exchange control rules.
Lastly, if the nominee passes away unexpectedly, the legal heir can claim the assets. If a nominee is not appointed, legal heirs can claim mutual fund assets after submitting necessary documents. In the absence of a legal heir or a person mentioned in the will, a relative may claim the assets by filling and submitting form T3 (Transmission Request Form).
In conclusion, updating your mutual fund nominee details online is a straightforward process that can be done quickly and efficiently. It's a crucial step in ensuring your investments are managed according to your wishes in the event of unforeseen circumstances.
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Investing in mutual funds is an essential aspect of personal finance, providing an opportunity for individuals to grow their wealth through collective investment.
Updating nominee details for mutual funds is an essential part of personal-finance management, as it ensures that your investments are passed on to the rightful beneficiaries in case of unforeseen events, simplifying the process of finance management.
