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NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Tools for Estate Planning

Ms. Kavita wants to ensure that her mutual fund units and bank deposits pass smoothly to her brother on her death without going through the will process. Which is the most direct step she can take?

Ms. Kavita should register a nomination naming her brother with the mutual fund house and the bank. This lets the nominee claim the assets on her death with minimal formalities. Informal letters or holding statements give no legal right to the assets.

  1. ARegister a nomination with the fund house and bank naming her brotherCorrect
  2. BWrite a letter to the AMC stating her wishes without signature
  3. CAsk her brother to hold the account statements
  4. DOpen the folio in a minor's name

Explanation

Nomination with the AMC and bank allows the nominee to receive the assets on death, simplifying transmission. An unsigned letter has no legal effect, holding statements gives no right, and a minor's folio is unrelated. Note that a nominee generally holds as a custodian subject to the will or succession laws for ultimate ownership in many cases.

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