Source: IRIS (12-MAR-12)

Loosing a family member could be an emotional and financial drain on you.

Here are some of the checks one should ensure while investing in funds and filling up application forms of mutual fund investments.

    1. Ensure the name is written in the application form as per the PAN and Know Your Client(KYC )details registered with Central Depository Services India Limited(CDSL)
    2. Enter the date of birth details on the application form especially if you are filling details of investment in a minors name.
    3. If investment is made by a husband/wife, the other spouse should be a joint applicant and the mode of holding should be in anyone or survivor basis or joint holding basis, if you would like both the parties to sign for any changes on the investment. Preferably, anyone or survivor reduces the time and operational delays in getting the work done!
    4. Ensure a nominee is registered inspite of two or three holders being the holders of the investment. If nominee is not registered, the number of documents for transmission increases.

  1. nvestments can also be held with 3 registered holders.
  2. Ensure the Primary bank details are updated. Multiple banks can also be registered as second and third option, in case the Primary bank needs to be changed, or cannot be accessed by the fund for some reason. However, a written mandate registering a new Bank as Primary bank needs to be furnished with bank account statement/ passbook and an original cancelled cheque signed by the first account holder.
  3. Ensure you request for atleast 10 original copies of death certificates in case of grievance of your family member and also ensure you keep sufficient notarized copies that would be needed by the fund houses for transferring name to the transferee.
  4. A Will if written, with proper distribution of assets and details of folio numbers and scheme names would be the best option to avoid any hassels. This needs to be updated as and when schemes change and fund options change. Distribution of assets mentioned in a Will, supersedes any investment holding pattern. Here is the link to the documentation needed for some of the fund houses for transferring names. This is as on date. Pl note, this is likely to change, based on legal laws and fund house specifications.