Remove joint holder in Mutual Fund

A joint holder in a mutual fund is an individual who shares equal ownership of the investment along with the primary investor. This arrangement allows both holders to make transactions, such as buying or redeeming units, and helps manage the investment efficiently. Joint holding can be useful for families or couples looking to manage finances together. However, circumstances may arise where removing a joint holder becomes necessary—be it for personal, legal, or financial reasons. Understanding the impact, process, and implications of removing a joint holder is crucial for a smooth transition. This guide covers everything you need to know about the impact of removing a joint holder, the step-by-step process, and the fees and timeframe involved. If you need further assistance, contact the mutual fund contact number for support.

The impact of removing a joint holder in mutual fund

• Ownership changes: Removing a joint holder shifts the ownership solely to the remaining holder(s). This change alters the mutual fund’s registration, affecting future transactions.

• Transaction authority: The sole holder will now have the exclusive authority to make decisions, including purchasing, redeeming, and switching mutual fund units.

• Tax implications: The transfer of units due to the removal of a joint holder may have tax implications, depending on the applicable laws at the time of change.

• Nomination update: Removing a joint holder may require updating the nominee details to ensure that the investment aligns with the new holder's intentions.

• Document changes: KYC and bank details may need to be updated to reflect the changes in holding pattern.

• Impact on investment goals: The removal can affect long-term financial planning, especially if the joint holder was actively involved in managing the investment.

Step-by-step process to remove a joint holder in mutual fund

1. Obtain the form: Visit the mutual fund’s official website or branch to download the ‘Change of Joint Holder’ form.

1. Fill out the form: Complete the form with accurate details, including the mutual fund account number, names of the current joint holders, and the details of the joint holder to be removed.

1. Attach documents: Provide relevant documents such as the mutual fund statement, identity proof of the remaining holder(s), and a NOC (No Objection Certificate) from the joint holder being removed.

1. Signature requirement: Ensure the form is signed by all current holders, including the one being removed, to authorise the change.

1. Submit the form: Submit the completed form and documents to the mutual fund’s office or authorised service centre.

1. Verification: The mutual fund company will verify the documents and process the request. You may receive a confirmation call or email for verification.

1. Confirmation: Once the verification is successful, you will receive an updated mutual fund statement reflecting the removal of the joint holder.

Fees and timeframe for removing a joint holder in a mutual fund

• Processing fees: Most mutual funds do not charge a fee for removing a joint holder. However, some companies may have nominal processing fees depending on their policy.

• Document fees: If you need to obtain notarised copies or additional documents, there may be separate charges for these services.

• Processing timeframe: Typically, it takes around 7-10 working days for the mutual fund company to process and confirm the removal of a joint holder.

• Verification time: The time taken for document verification may vary based on the mutual fund company’s internal procedures and the accuracy of the submitted information.

• Communication: You will receive a confirmation via email or SMS once the request is processed. If there are any delays or additional requirements, the mutual fund provider will inform you accordingly.

• Contact support: For specific details on fees and processing time, reach out to the mutual fund contact number for assistance.

Conclusion

Removing a joint holder from a mutual fund involves careful consideration and understanding of the process, its impact on ownership, and potential fees. By following the proper steps, providing accurate documentation, and being aware of the timeframe, you can ensure a smooth transition. It’s also important to update relevant details, like nominations, to align with your future investment goals. If you have questions or require support, don't hesitate to contact the mutual fund contact number for expert guidance.Top of FormBottom of Form