How to Modify Nomination in your Mutual Fund Accounts/Folios

  • The account holder of any mutual fund, provident fund, bank account or demat account has a provision to nominate his/her relative to take charge of the assets after him/her.
  • Nomination is a mandate given to the service provider about who will receive the proceeds of the account or be able to manage it after the death of the account holders.
  • A nomination is valid until it has been modified during the lifetime of the account holders.
There are possibilities of changes in our personal life and priorities and hence Nominations can be modified during the lifetime of the account holders any number of times.
If you want to change your nominee in any of your financial investments, you can do so by obtaining the general format from the respective investment service provider (bank or mutual fund house). Such forms are available online too.
Any changes to the nomination will have to be signed by all the account holders irrespective of the mode of operation of the account. If it is a joint account, all joint holders have to sign.
It is important to note that Power of attorney holders and Karta of HUFs cannot make or modify nominations. Also, in case of corporate investors, the authorized signatory on behalf of the corporate investor can not make or modify nomination for the corporate entity.
Sometimes, an investor want to change the proportions to the multiple nominees he has already mentioned in the investment. This change can also be carried out by filling the modification form.
Few Important Points related to Nomination:
  • Minors and NRIs can be nominees of accounts. Payouts to them will be according to procedures applicable for such persons.
  • If the nominee is a minor, the name of the guardian and the date of birth of the minor have to be provided.
  • A nomination is valid until it has been modified during the lifetime of the account holders.
  • Corporate and HUFs (non-individuals) can not nominate anyone.
  • Nomination can not be considered as transfer of the assets in the absence of will of the deceased investor. Nominee is just the care taker of the assets and the real beneficiary would be decided by the succession law, if challenged by any of the legal heir.
If you need any more information on this article, you can raise your query by visiting
Vitamin-M Financial Services

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