Importance of Nominees in investments - Fusion - WeRIndia

Importance of Nominees in Mutual Fund investments

Importance of Nominees in Mutual Fund investments

Nominees are very important for your financial investment. They have a significant role in mutual fund investments especially.

Many people do not think of naming a nominee. They write the name of their desired person without a second thought.

But, financial experts say that this is not correct. If you are nominating someone, it means that you are referring his or her name as a second holder. In other words, he or she is a trustee of your investment.

Nominee is supposed to make sure that the investment passes on to the legal heirs.

He or she can claim the investment only if there is no legal heir or written Will.

So, be careful while writing the name of a nominee in mutual fund investments.

A nominee must be a person of around your age or younger than you.

Do not forget to update the name of nominee whenever it is required.

For instance, some people write their daughter’s names as nominees. Their last names will be changed after marriage. So, if you do not change them as per the records, she may not get the money.

Also, write the name of the nominee carefully without any spelling mistake.

You can nominate up to three nominees in a mutual fund folio.

The nominees can be changed, deleted or added anytime by the investor.

You can even nominate a minor child, but a guardian is essential in such cases. Also, make sure the guardian is not too old as he or she should be around after the child turns a major.

Single people often face dilemma while nominating. They prefer to write their parents’ or siblings’ name as nominee.

Whatever is the situation, Will writing is very useful.

Wiring a clear Will is one of the best ways to surrender your investments to your legal heirs.


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