The investors' entire portfolio will be frozen and redemption will be blocked if they fail to make nominations for their mutual funds by the new deadline.
Mutual funds are favored by Indians as safe investment options because they offer the opportunity to diversify with stocks from various industries. However, it is essential to name a successor to the portfolio in the event of a death for the investment to be distributed to relatives.
In India, the deadline for naming nominees for mutual funds had been set for March 31, 2023, but that date has now been moved up to September 30.
AMCs and RTAs will update Unit holders on the steps to ensure compliance every 15 days to ensure that the procedure for announcing or withdrawing a nominee is followed.
The investors' entire portfolio will be frozen and redemption will be blocked if they fail to make nominations for their mutual funds by the new deadline.
A June 2022 circular issued by the Securities and Exchanges Board of India (SEBI) mandated nomination for mutual fund portfolios in India, including jointly held portfolios.
Indians are interested in mutual funds The demand for mutual funds is on the rise in India. In 2022, two crore new investors will choose folios, bringing the total to 14.11 crore unit holders.
Between 2013 and 2023, the Indian mutual fund industry's assets under management increased from less than Rs 8 lakh crore to more than Rs 39 lakh crore.
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