Deadline to declare mutual fund nominees extended to September 30, 2023

With an opportunity to diversify withs stocks from different sectors, mutual funds are popular as secure investment options among Indians. But nominating someone for the portfolio in the event of a person's death is crucial for the investment to be passed on to family members.

The deadline for declaring nominees for mutual funds in India had been set at March 31, 2023, but has now been extended to September 30.

Steps to ensure compliance chalked out

Unit holders will be updated by AMCs and RTAs every 15 days, to ensure compliance to the norm about announcing or pulling out a nominee.

If investors fail to declare nominations for their mutual funds before the new deadline, their entire portfolio will be frozen, and redemption will be blocked.

Nomination had been made mandatory for mutual fund folios, including the jointly held ones in India, throuh a June 2022 circular by the Securities and Exchanges Board of India (SEBI).

Mutual funds attracting Indians

The demand for mutual funds has been surging in India, with two crore new investors opting for folios in 2022, taking the tally to 14.11 crore unit holders.

Assets under management for the Indian mutual fund sector, has gone up from little over Rs 8 lakh crore to more than Rs 39 lakh crore between 2013 and 2023.