How to add a nominee name to Mutual Fund, know the process

If you have opened an online investment Account, then you have to first go to your folio where you will get the option of making a Nominee name to Mutual Fund.

If you also invest in mutual funds, you must have come to know that now it has become mandatory to register the nominee’s name. The Securities Exchange Board of India (SEBI) issued a circular saying that the name of the nominee will have to be registered from October 1. Which you have to do on or before March 31, 2023. Investments of those who do not do so will be banned. Today we are telling you how you can add the nominee’s name.

No witness needed

SEBI also said in its circular that when you make a nominee, you do not need a witness. For this only the signature of the account holder will be required. Account holders can also take advantage of the e-signature facility if they want. In the case of a joint account holder also have to make a nominee.

Why was there a need?

The option of making a nominee was also there earlier. Many people have already added the name of their nominee, but many people used to ignore this option, but now it has been made mandatory by SEBI. This facility has been made necessary because, after the death of the investor, his nominee can get the benefit of his investment. Along with this, the transfer becomes more manageable later on.

Add name online

If you have opened an online investment account, then you have to first go to your folio where you will get the option to create a nominee. The way nominees are made in the bank account, you have to follow the process here as well.

Offline add name

To add the name of the nominee offline, you have to fill out the nomination form. On which the signature of the investor is required. After signing that form has to be submitted to the mutual fund house, transfer agent, and registrar. After this, the name of the nominee will be added.

Two-factor authentication required

If you have created a joint account or are investing through any other intermediary, you can get two-factor authentication done. Which will be online in which you will have to log in to your account first. You can log in through OTP i.e. that time password.

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