Investing in mutual funds is a smart way to grow your wealth over time. Protecting your investment is also important.
You want it to go to the right person if something happens to you. This is where a nominee in mutual funds plays an essential role. A nominee is the person who will receive the mutual fund units in case of your unfortunate demise.
In this article, we will guide you step by step on how to check the nominee in your mutual funds. We will also discuss why it is important to choose a nominee. We will explain how to update or change the nominee. Lastly, we will cover what to do if there is no nominee assigned.
What Is a Nominee in Mutual Funds?
A nominee is someone you appoint to inherit your mutual fund investments. The process of adding or checking a nominee ensures that your investment is transferred smoothly to the nominee without any legal complications.
When you invest in mutual funds, you are given the option to fill in a nomination form. This allows you to specify a person (or people) who will receive your mutual fund units if you are not around.
For example, if you nominate your spouse, your mutual fund investments will be transferred to them in case of your demise.
Why Is Nomination Important in Mutual Funds?
Having a nominee for your mutual funds ensures peace of mind. Here’s why it is important:
- Avoids Complications: If no nominee is added, the family may need to get a succession certificate to access the investments.
- Smooth Transfer of Units: When a nominee is mentioned, the transfer process is straightforward.
- Secures Your Family’s Future: You can ensure your loved ones benefit from your investments.
How to Check the Nominee in Mutual Fund?
Now that we understand the importance of a nominee, let’s focus on how to check if a nominee is added to your mutual fund account.
Step 1: Check Your Mutual Fund Statement
Your mutual fund statement, or account statement, shows all the details of your investments. It also includes nominee information. Here’s how you can check:
- Open your latest mutual fund statement.
- Look for a section titled “Nominee Details.”
- If you have nominated someone, their name will appear here.
Step 2: Log in to Your Mutual Fund Account Online
Most fund houses now offer online services, making it easy to check nominee details. Follow these steps:
- Visit the website of your fund house or the platform where you manage your investments.
- Log in with your bank account number or registered credentials.
- Navigate to the “Nominee” or “Profile” section.
- Here, you will see the name of the nominee.
Step 3: Contact Your Fund House
If you cannot find the nominee details online, you can directly contact your fund house. Call their customer care number or email them with your mutual fund folios and registered details. They will guide you further.
Step 4: Use RTA Platforms
Registrars and Transfer Agents (RTAs) like CAMS and KFintech handle records for most mutual funds. You can check nominee details on these platforms by:
- Logging in to the RTA website.
- Using your PAN or folio number.
- Checking the nominee information under the investment details.
What If There Is No Nominee?
If you find that there is no nominee listed in your mutual fund, don’t worry. You can easily add one. Here’s how:
Online Process to Add a Nominee
- Log in to your mutual fund account.
- Go to the “Nomination” section.
- Fill out the required details of the nominee, such as name, relationship, and date of birth.
- Submit the form online.
Offline Process to Add a Nominee
- Download the nomination form from the fund house’s website.
- Fill in your folio number, nominee’s details, and your signature.
- Submit the form to the nearest branch of the fund house or RTA.
How to Change or Update Nominee in Mutual Funds?
Sometimes, you may need to change or update your nominee. For example, you may want to nominate a different person or add multiple nominees. Follow these steps:
Step 1: Log in Online
- Visit the fund house website or app.
- Navigate to the nominee section.
- Update the details as required.
Step 2: Submit an Offline Form
- Download and fill out a nomination change form.
- Provide the new nominee’s details.
- Submit the form at the branch office.
What Happens If There Is No Nominee?
If you do not have a nominee, your family may face legal hurdles to claim your mutual fund units. In such cases, they will need to provide a succession certificate or legal heir document to transfer the units. This process is time-consuming and can be stressful for your loved ones.
Key Points to Remember About Mutual Fund Nomination
- Who Can Be a Nominee?
- A nominee can be anyone—your spouse, children, parents, or even a friend.
- Multiple Nominees:
- You can nominate more than one person and specify the percentage of the investment each will receive.
- Updating Nominees:
- You can update or change the nominee anytime during the investment period.
- Nomination for Minors:
- If the nominee is a minor, you need to appoint a guardian.
Common Issues and How to Resolve Them
- Nominee Details Not Visible in the Statement:
- Contact your fund house immediately to update or check the details.
- Wrong Nominee Details:
- Submit a correction form online or offline to fix the error.
- No Access to Online Account:
- Use your folio number or contact the fund house directly.
Frequently Asked Questions
1. Can I have different nominees for different mutual fund folios?
Yes, you can assign different nominees for different folios. You can also assign multiple nominees for a single folio.
2. Is it mandatory to add a nominee?
While it is not mandatory, it is highly recommended. Not having a nominee can create legal issues for your family.
3. Can I change the nominee after investing?
Yes, you can change or update the nominee anytime.
4. How can I remove a nominee?
You can remove a nominee by submitting a nomination removal form.
Adding and checking the nominee in mutual funds is a simple but important step. It helps keep your investments safe. It saves your family from problems. It also makes sure your hard-earned money helps the people you care about most.
Take a few minutes today to log in to your mutual funds online account or check your statement. Confirm the nominee details and make updates if necessary. Remember, safeguarding your financial future also means planning for your loved ones.
Make sure your mutual fund nomination is updated and correct. This way, you can feel secure that your investments are safe.
Disclaimer: This article is intended for informational purposes only and is based on data collected from the internet. It’s always advisable to consult with a financial expert or advisor before making any investment decisions. Your financial future is important, and professional guidance can help ensure you make the best choices for your situation.