🧾 Is Nominee Compulsory While Starting a SIP in Mutual Funds? (Updated as per June 2025 Rules)

 When starting your investment journey through a Systematic Investment Plan (SIP) in mutual funds, one question often arises:

"Is nomination mandatory now, and what details are required of the nominee?"

As of 1st June 2025, SEBI has updated its guidelines to ensure better transparency and smoother transmission of investments.

Let’s clear all your doubts, backed by the latest rules.

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🌱 Introduction to WealthCare Vest by Raghav Goel

At WealthCare Vest, we simplify your financial journey with clarity and care. From choosing the right SIP to helping you complete compliance requirements like nominee registration — we walk with you every step of the way.

Tagline: Caring for your wealth, strengthening your investment.

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📝 New Nomination Guidelines (Effective 1st June, 2025)

According to the revised SEBI rules:

✅ Nomination is Mandatory

You must either:

• Add a nominee, or

• Submit an opt-out declaration (physical or digital)

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📋 Updated Mandatory Nominee Details (as per new rules)

When adding a nominee, you now must provide the following:

1. Full Name of the nominee

2. Share Percentage (especially important when nominating more than one person)

3. Relationship with the investor

4. Residential Address

5. Email ID & Mobile Number

6. Identity Number (Any one of the following):

   • PAN

   • Driving License

   • Last 4 digits of Aadhaar

   • Passport (for NRIs/OCIs/PIOs)

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👶 If the Nominee is a Minor

You must additionally provide:

• Date of Birth

• Guardian Details

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🧾 Other Important Points

• You can choose to display the nominee’s name on your mutual fund account statement.

• If the nomination request is submitted using a thumb impression, it must be attested by two witnesses with:

  • Name

  • Signature

  • Address

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💡 Why Nomination Is So Important

In the unfortunate event of the investor’s death, a registered nominee helps:

• Avoid lengthy legal procedures

• Ensure smooth and fast transfer of mutual fund units

• Provide financial protection to your loved ones

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📌 Summary of Key Requirements (Post June 2025)

Detail	Mandatory
Full Name	✅ Yes
Share Percentage	✅ Yes
Relationship with Investor	✅ Yes
Residential Address	✅ Yes
Email ID & Mobile Number	✅ Yes
Identity Proof (PAN/Etc.)	✅ Yes
Minor DOB & Guardian (if minor)	✅ Yes

🔚 Final Thought

The nomination process has now become more structured and transparent to protect your investments. While it might seem like extra paperwork, it is a small step toward securing your family's financial future.

At WealthCare Vest, we help you complete all compliance-related processes with clarity and care.

📲 Click Here https://linktr.ee/wealthcarevest

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⚠️ 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.