As September 30 is only five days away, mutual fund investors are supposed to finish the process of completing nomination, failing which their account could get frozen. This means they would not be able to sell their mutual fund units.
For the uninitiated, nomination is a facility that enables a unitholder to nominate a person who can claim the units (or the proceeds ) in case unitholder is no more. Investors can also choose to opt out of the nomination facility.
And in case mutual fund units are held jointly by more than one person, all the joint unit holders are meant to nominate a person together in whom all the rights in the units would vest in the event of death of all the joint unit holders.
How to choose a nominee?
The option of choosing a nominee is available online as offline. One can opt for a nominee online or one can also submit the physical form for nomination. Those who don’t want a nominee can also opt-out at the designated investor service centres of CAMS/ KFintech/ AMCs before the deadline.
Steps to follow to choose a nominee
1. At the outset, visit the CAMS or KFintech portal that will take you to nominee up dation.
2. You need to enter the PAN details. As you enter the details, you will receive an OTP.
3. This OTP will be sent to the your email or mobile number depending on what you opt for.
4. You are made to enter the OTP to access the nominee details form.
5. After this, you will be able to register a nominee (or change the nominee if you have chosen already) or opt-out of the requirement to choose a nominee.
6. You can now choose the option you want, and proceed with your application and nominate a person you want to be chosen as nominee.