NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Investor Services
A unitholder holding units in a mutual fund scheme wants to add a nominee to the folio after the investment has been made. Which statement about nomination in a mutual fund folio is correct?
A unitholder may change or cancel a nomination at any time by submitting the prescribed form. Nomination is not restricted to the first purchase, non-individual investors cannot nominate, and a nominee acquires no ownership rights while the unitholder is alive.
- ANomination can be made only at the time of the first purchase and cannot be changed later
- BA non-individual investor such as a company can nominate a person in the folio
- CNomination can be changed or cancelled by the unitholder at any time by submitting the prescribed formCorrect
- DA nominee becomes the owner of the units while the unitholder is alive
Explanation
An individual unitholder can make, change or cancel a nomination at any time through the prescribed form. Non-individuals such as companies, trusts and societies cannot nominate, and the nominee has no rights during the unitholder's lifetime. Nomination is not limited to the first purchase.
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