You can have up to three nominees on your MF portfolio

While specifying multiple nominees, the investor can also choose to specify what percentage of the investment will go to which nominee


I had invested in a gold international feeder fund. It has given negative returns over the past year. Should I take my money out and invest in an equity fund here or wait it out?

—M. Subramanium

Gold international feeder funds are funds that invest in the stocks of overseas gold mining companies. Their performances are correlated to gold price but do not track it. In the past year, both gold and such companies have given negative returns. The short-to-medium term prospects of these funds are not positive. So, I would indeed recommend that you cut your losses and redeem your money.

Investment opportunities in the Indian equity market hold greater promise than such funds. You can divert the redeemed money to a diversified equity fund in India such as Mirae Asset India Opportunities fund or Franklin India Prima Plus fund.

Can there be more than one nominee in a mutual fund (MF) account?

—Chintan Tyagi

Yes, there can be up to three nominees for an MF portfolio. While specifying multiple nominees, the investor can also choose to specify what percentage of the investment will go to which nominee. For example, one could have three nominees—a spouse and two children, with the spouse getting 50% and the children getting 25% each. Every fund house has a nomination form that needs to be filled out to specify or change the nomination on a folio. There are no additional documents required along with this nomination form.

However, the nominees will be required to sign the form (if the nominee is a minor, a guardian would need to sign). The form will also need to be signed by all the unit holders in the folio. For all the nominees, the name and address has to be provided.

It would be advisable to obtain permanent account numbers (PAN) for the nominees and have them registered according to know-your-customer (KYC) norms to enable a smoother and faster transfer of units.

I am looking at investing in a systematic investment plan (SIP) with Rs.5,000 a month. I am looking at tax saving and debt funds with medium risk. Which funds should I look at?

—Ashish K.

Before deciding on the funds, decide how much money of your monthly SIP amount is going to go to the tax-saving fund and how much to the debt fund. Tax-saving investment amount can be determined by working with the section 80C limit of Rs.1.5 lakh of Income-tax Act, 1961, and how much you need to invest to reach the limit after you take care of your home loan, insurance, and other provisions that come under that section. You can invest the rest of your SIP amount in the tax-saving fund. Choosing funds is the easy part. You can go with Axis Long-Term Equity fund for tax saving and Franklin India Short Term Income plan for your debt investment.

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