Before Sep 30, all mutual fund investors are supposed to provide a nomination or opt-out of it. The rules say that if mutual fund folio was created before Oct 1, 2022, nomination for folios must be complied with on or before this deadline.
It is vital to note that those who miss this deadline will not be able to redeem their mutual fund units post this date.
For the unversed, 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.
If units are held jointly by more than one person, all joint unit holders are required to together nominate a person in whom all the rights in the units would vest in the event of death of all the joint unit holders.
How to opt for a nominee?
One can choose a nominee online or alternatively, submit the physical forms for nomination/ opt-out at the designated investor service centres of CAMS/ KFintech/ AMCs before the deadline.
Some mutual funds such as Aditya Birla SunLife, Bandhan, Franklin Templeton, HDFC, L&T and HSBC are serviced by CAMS, whereas others are serviced by KFintech such as Axis, Baroda BNP Paribas, Bank of India, Canara Robeco, Edelweisss and Navi Asset.
To be able to choose a nominee, one has to go to the relevant portal of CAMS or KFintech at these links.
A step-by-step guide to choose a nominee
1 Visit the official portal of CAMS or KFintech that will take you to nominee updation.
2 Here, you will be asked to enter the PAN details. Upon entering the details, you will receive an OTP.
3 The OTP will be sent to the email ID or mobile number based on what you opt for.
4. You are now asked to enter the OTP to access the nominee details form.
5. Now you can 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 select the option you want and proceed with your application and nominate a person you want to be chosen as nominee.
