Few Operational Updates In Mutual Funds:

Mutual funds will undergo few operational changes and they will be mostly of the nature of risk mitigation,fraud avoidance and any other operational risk with the view to protect the interest of the investors.

Unit holders of HDFC mutual funds have received email in this regard and few important points notified are as follows.These changes will be effective from 1st May 2012 for HDFC mutual fund schemes.

Change Of Bank Mandate:

Unit holders need to submit their valid request for change in bank details at least 7 days prior to the date of redemption or dividend payment.Investors need to ensure that this request has been processed or not before submitting redemption request.If change in bank mandate is not processed then payment will be made in the existing bank account in the folio.

Request of change of bank mandate submitted alongwith redemption form will not be considered and payment will be made in the account registered with the folio.

Multiple Bank Account Registration:

Number of bank account allowed to attach for folio varies as per different mutual funds.E.g HDFC mutual fund allows 5 accounts for individuals and 10 accounts for non-individuals.Investor need to mention one account as “Default Account” though investor can specify either account for credit of redemption.

Change Of Address:

If KYC Is Not Completed:

Then Self attested copy of address proof AND Self attested Copy of Pan card need to be submitted at the registration agency.

If KYC Is Registred:

Then Self attested copy of address proof AND Other form / document specified by KRA time to time.

Originals needs to be produced at the office of KRA or documents need to be attested by authorised officials as per guidelines of KYC registration.

Option to hold Units in demat form:

Investors can apply to allot the units in demat mode by specifying their demat account details in the application form.It will be available for different schemes / plans options ..This list may available with the respective mutual funds.

This mail also urge for nominations especially for single holding accounts.Nominee  receives units only as agent and trustee of legal heirs.Investors should opt for the nomination facilities to avoid hassles and inconvenience in case of unforeseen events in future.