🧾 Is Nominee Compulsory While Starting a SIP in Mutual Funds? Let’s Clear the Confusion!
When you begin your investment journey through Systematic Investment Plans (SIPs) in mutual funds, one of the common questions that often pops up is:
"Is a nominee compulsory while starting a SIP, and if yes, are their PAN details, contact number, and email ID also mandatory?"
This was a real query raised by an investor in a mutual fund forum, and it reflects the genuine confusion that many investors have.
Let us explain this in simple terms — the correct and complete way.
🌱 Introduction to WealthCare Vest by Raghav Goel
At WealthCare Vest, we aim to simplify your investment journey with clarity, trust, and personalized guidance. Whether you're just starting your SIPs or you're a seasoned investor, our goal is to help you grow your wealth with care and knowledge.
Tagline: Caring for your wealth, strengthening your investment.
👨👩👧👦 Is It Mandatory to Add a Nominee While Starting a SIP?
Yes, as per SEBI guidelines, it has now become mandatory to either add a nominee or explicitly opt out of nomination while starting a SIP in mutual funds.
This regulation was implemented to ensure that your investments are passed on smoothly to your loved ones in case of any unfortunate event.
If you do not want to nominate anyone, you will have to submit a physical opt-out form with a declaration confirming that you're making this decision on your own.
✅ What Details Are Compulsory for the Nominee?
As per the current rules (as of 2025), there are only four mandatory fields that need to be filled in for a nominee:
-
Name of the Nominee
-
PAN of the Nominee
-
Relationship with the Nominee
-
Percentage Allocation (in case there are multiple nominees)
These four pieces of information are sufficient to complete the nomination process.
❌ Are Contact Details, Email ID of Nominee Compulsory?
No. As per current mutual fund processes:
-
Mobile number
-
Email ID
-
Address or Aadhaar details of the nominee
are not mandatory, although some platforms or fund houses might ask for them for future reference or internal KYC records.
So, if a platform is asking for these, it’s likely for smoother servicing later, but not a regulatory requirement.
📝 Summary Table
| Detail | Mandatory? |
|---|---|
| Name | ✅ Yes |
| PAN | ✅ Yes |
| Relationship | ✅ Yes |
| Percentage of Allocation | ✅ Yes |
| Mobile Number | ❌ No |
| Email ID | ❌ No |
| Address | ❌ No |
💡 Why Is Nomination Important?
Adding a nominee ensures your investments are protected and can be transferred easily to your family. It prevents legal hassles and avoids complications for your heirs.
Always nominate someone you trust and inform them about your investments.
🔚 Final Thought
Adding a nominee is not just a formality. It’s an act of responsibility. At WealthCare Vest, we help our clients complete their SIPs and nominations with full transparency and care. If you need any help with mutual fund investments, SIPs, or planning your portfolio — we’re here to help.
📲 Start your SIP journey with us https://linktr.ee/wealthcarevest
⚠️ Disclaimer:
Mutual Fund investments are subject to market risks. Please read all scheme-related documents carefully. The content of this blog is for informational purposes only and does not constitute financial advice. For personalized guidance, consult with a SEBI-registered financial advisor.
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