Mutual Fund Facilities

Electronic Clearing System     Direct Credit/Redemption    Nomination

Electronic Clearing System

 RBI has introduced a method of payment that promises you an option to collect your periodic interest/ dividend/repurchase directly through your bank account. In this system, payment instructions would be issued electronically through our banker to the clearing authority and the clearing authority would supply credit reports to the bank with which you maintain the specified amount. 

The branch will credit your account directly and an ECS entry will appear in your passbook. A payment advice will also be sent to you. This facility will help you in avoiding cases of pilferage, fraudulent encashment etc.  

It is for the protection of investor’s interest. The bank account number will be mentioned on the interest or dividend warrant, so that such warrant cannot be encashed by any one else. Further, cash corporate benefits such as dividend, interest will be credited to the investors account directly through the ECS (Electronic Clearing Service) facility, wherever available, by the company. 

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Direct Credit/Redemption 

The Convenience of ‘ No Cheques'

 Redemptions and Dividends are now free from the delay and inconvenience of ‘ CHEQUES'  

Investors can now receive redemption and dividend proceeds DIRECTLY in their bank account.

 To avail of this facility request a change in the mode of payment from "Warrant Payment" to "Direct     Credit" facility and send your bank details to our nearest investor service center.  

The process to be followed by the investors for availing the Direct Credit facility for Redemptions proceeds/Dividend Payout would be as under:  

Investors whose Direct credit mandate is already registered with us, their redemption proceeds/ dividend payout will directly be credited in their respective bank accounts.  

All redemptions in a folio after the mandate is received will happen by direct credit to the investor's account

Investors may avail any of the above facilities by ticking the appropriate box in the Application Form or may contact the ISCs or the AMC for further details.  

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Nomination

Who can nominate?

Only individuals holding beneficiary accounts either singly or jointly can make nomination. Non-individuals including society, trust, body corporate, karta of Hindu Undivided Family, holder of power of attorney cannot nominate.

Who can be a nominee?

Only an individual can be a nominee. A nominee shall not be a society, trust, body corporate, partnership firm, Karta of Hindu Undivided Family or a power of attorney holder

Who can make use of the nomination facility?

Only individuals holding beneficiary accounts either singly or jointly can make nominations. Non-individuals including society, trust, body corporate, partnership firm, karta of Hindu Undivided Family, holder of power of attorney cannot nominate.

Are joint holders of accounts allowed to nominate?

 Nomination for joint holders is permitted, however in the event of death of any of the holders the mutual fund units will be transmitted to the surviving holder’s name. In the case of death of all holders the units will be transmitted to the nominee account.

Can a NRI nominate?

 Yes, a NRI can nominate directly. But, the power of attorney holder cannot nominate on behalf of NRI.

Can a minor nominate?

 No, a minor cannot nominate either directly or through its guardian.

Who can be a nominee?

 Only an individual can be a nominee. A nominee cannot be a society, trust, body corporate, partnership firm, karta of Hindu Undivided Family or a power of attorney holder.

Can there be more than one nominee?  

 No, only one nomination can be made per MF investment.

Can a minor be a nominee?

Yes, a minor can be a nominee. In such a case, the guardian will sign on behalf of the nominee and in addition to the name and photograph of the nominee, the name, address and the photograph of the guardian must be submitted to the AMC.

Can a NRI be a nominee?

Yes, a NRI can be a nominee subject to the exchange control regulations in force.

What is the procedure for nomination? To nominate the account holder(s) must fill nomination form containing their signatures along with the signatures and photographs of the nominee and signatures of two witnesses. In case if the nominee is a minor then the signature and the photograph of guardian will also be required. This form can be submitted to AMC at the time of initial investment or at the later date even after the investment is made.

Can the nominee be changed?

Yes, the nomination can be changed by the account holder/s anytime, by simply filling up a new nomination form and submitting the same to the AMC.           

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Eligibility for Investments in Mutual Funds

Minimum Amount For Investment 

Eligibility for Investments in Mutual Funds

The following persons are eligible and may apply for subscription to the Units of the Scheme's) of Mutual Fund (subject, wherever relevant, to purchase of units of mutual funds being permitted and duly authorized under their respective constitutions, charter documents, corporate / other authorizations and relevant statutory provisions etc)  

  1.       Indian resident adult individuals either singly or jointly

  2.       Minor through parent / lawful guardian

  3.       Non-resident Indians (NRIs)/ Persons of Indian Origin on full repatriation basis (subject to RBI approval, if required) or on non-repatriation basis.

  4.       Religious and Charitable Trusts, Wakfs or endowments of private trusts (subject to receipt of necessary approvals as required) and Private Trusts authorized to invest in mutual fund schemes under their trust deeds

  5.       Partnership Firms

  6.       Karta of Hindu Undivided Family (HUF)

  7.       Banks (including Co-operative Banks and Regional Rural Banks) & Financial Institutions

  8.       Foreign Institutional Investors (FIIs) registered with SEBI on full repatriation basis (subject to RBI approval, if required)  

  9.       Companies, bodies corporate, public sector undertakings, association of  persons or bodies of individuals and societies registered under the Societies Registration Act, 1860 (so long as the purchase of units is permitted under the respective constitutions)

  10.       Army, Air Force, Navy and other Para-military funds and eligible institutions

  11.       Scientific and Industrial Research Organizations

  12.       Provident / Pension / Gratuity and such other Funds as and when permitted to invest

  13.       International Multilateral Agencies approved by the Government of India / RBI

  14.       Trustees, AMC or Sponsor or their associates (if eligible and permitted under   prevailing laws), may subscribe to the Units under the Scheme.  

  15.             Non-resident Indians / Persons of Indian Origin residing abroad
          on full (NRIs) repatriation basis (subject to RBI approval,  required)

  16.            Trustees and their associates (being individuals)

  17.       Minor through parent / lawful guardian

  18.             Hindu Undivided Family (HUF) (through Karta or otherwise)

  19.       Indian resident adult individuals either singly or jointly (not  exceeding  three)  

Minimum Amount For Investment 

Types of MF

Amt (in rupees) 

Equity

5000

Debt/Income

10,000

ELSS ( Tax Saving)

500

FMP( Fixed Maturity Period)

500 onwards

MIP (Monthly Income Plan)

5000 onwards

SIP (Systematic Investment Plan)

1000

  Courtesy:- HSBC Mutual Fund     

 Courtesy :- ICICI Prudential Mutual Fund, TATA Mutual Fund

 

 

 

 

 

 

To initiate Mutual Fund Investment & avail our Mutual Fund Portfolio Services, 
Pl. provide your details at : nrimf@femaonline.com