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

Under the nomination facility in mutual fund folios, which of the following statements is correct for an individual investor holding units in a single name?

Nomination can be made in favour of more than one person with each nominee's share specified. The nominee gets rights only after the investor's death, and NRIs can also be nominated, so the other statements are incorrect.

  1. ANomination is not permitted for units held in single name
  2. BA nominee can be a person resident in India only, never an NRI
  3. CNomination can be made in favour of more than one person, with the share of each specifiedCorrect
  4. DA nominee automatically becomes the beneficial owner of the units while the investor is alive

Explanation

An individual holding units singly or jointly can nominate one or more persons and state the percentage share of each. Nominees can include NRIs, and the nominee has no rights while the investor is alive; the nominee only receives the units on the investor's death.

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