Ppfas mutual fund: Famous Mutual Fund House- Parag Parikh Financial Advisory Private Limited (PPFAS) has issued the necessary alert for its investors. According to this, from 1 July 2025, the new investment application of the entire nominee details or valid opt-out declaration will be rejected. Opt-out declaration means that investment does not want to appoint a nominee in its mutual fund investment.
Why is a nominee or opt-out declaration necessary?
Nominee or opt-out declaration is necessary to reach the claim to the right heirs in case the investor absence. This can prevent legal complications and succession disputes. If no nominee is added nor opt-out declaration, such investment applications will be rejected from 1 July 2025.
SEBI and AMFI (Association of Mutual Funds in India) have made it mandatory for protecting and transparency of investors. PPFAS informed its customers via email that this step is being taken under the new guidelines of AMFI and SEBI.
Who cannot be a nominee?
PPFAS has made it clear that the investor will have to fill the nominee or opt-out form and submit itself. In addition, some units will not be considered a nominee:
- Any trust (except for religious or charitable trust)
- Society
- Body corporate
- Partnership firm
- Hindu undivided family (HUF)
- Power of Attorney Holder
What information is necessary to give?
According to email, it is mandatory for investors to give some important information related to nominee. This should include the name of the nominee, one of the documents related to identity like PAN number, driving license number or last four digits of Aadhaar.
If the investor falls in the NRI, OCI or PIO category, the passport number will be acceptable. Apart from this, it is also necessary to give the contact details of the nominee such as residential address, email and mobile or telephone number. His relationship with the investor will also have to be told. Also, if the nominee is a minor, then his date of birth will have to be given.
How to update nominee details?
Investors can update their nominee details or opt-out declaration by visiting the Selfinvest website of PPFAS Mutual Fund. This process can also be completed by depositing physical forms in CAMS Online, registered mutual fund distributors or nearest PPFAS branch.
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