Nomination is the process of appointing a per son to take care of your assets in the event of your death. You can appoint a nominee for your mutual fund scheme or for your demat account, in case you hold MFs in your demat account. A nominee can be any per son -a family member or a friend or any other person you trust. You need to choose a nomi nee with care as the per son needs to be reliable enough to take care of your assets in the event of your death.

2. How do you make a nomination in a mutual fund?

When you invest in a MF, there would be a space in the form, for nominee details. Non-individuals including societys, trusts, corporate bodies, Kartas of hindu undi vided family (HUF), holder of the power of attorney are unelgible to nominate . Only one person can be appointed as a nominee.

Nomination for joint holders is permitted, however in the event of death of any of the hold ers, the benefits will be transmitted to the sur viving holder's name. In the case of death of all holders the benefits will be transmitted to the nominee's account.

3. Can an investor make multiple nominations?

Yes, an investor has an option to register up to three nominee in a folio and specify the percentage of the amount for each nominee. However, if the percentage is not specified, equal shares will go to each nominee.

4. What are the benefits of registering a nomination?

When a nomination is regis tered, it will facilitate easy transfer of funds to the nominee(s) in the event of the demise of the investor. However, in the absence of a nominee, a claimant would have to produce a host of documents like a will, legal heir certificate, no-objection certificate from other legal heirs etc. to get the units transferred in hisher name.

5. Can I change my nominee once heshe is appointed?

The nominee can be changed anytime when you wish to do the same.