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NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Investor Services

A unitholder of a mutual fund scheme wants to add a nominee to an existing folio. Which statement about nomination in mutual fund folios is correct?

Nomination in a mutual fund folio is available to individuals, whether holding singly or jointly, but not to non-individuals such as companies or trusts. It can be changed later, and the nominee need not be a relative; a minor can be nominated through a guardian.

  1. ANomination is allowed for individuals holding units singly or jointly, and non-individuals cannot nominateCorrect
  2. BA nominee can be appointed only by a registered will
  3. CNomination can be made only at the time of the first investment and cannot be changed later
  4. DOnly a family member can be appointed as a nominee, and a minor cannot be one

Explanation

Nomination facility is available to individual investors, either single or joint holders, while non-individuals such as companies, trusts and societies cannot nominate. It can be changed or cancelled later, a nominee need not be a family member, and a minor can be nominated through a guardian. So the other statements are wrong.

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