1. I have added my family name along with my name through a gazette notification. What should I do to change this correction in my NPS ACCOUNT? When I approached the bank, they said it is not possible/do not know. Will there be a problem in the demat account as well? Please tell me what to do?
Once the gazette notification is published, use the notification as proof to update your new name on all your other official documents. In NPS account, for changing the account details such as name, address contact details as recorded with CRA. You have to submit the request in Form S2 to the Service Provider along with copy of gazette notification. In the case of demat account, you need submit the request for updating the name along with gazette notification as supporting document to the depository participant. Please check for the additional documentary requirement, if any, with the service provider for effecting the same.
2. Can you explain about Specialized Investment Funds? What are their advantages and disadvantages? As an NRI, can I invest in them? Which is the best SIF available?
Specialised Investment Funds (SIF) is a latest product category approved by SEBI. It aims to bridge the gap between mass market mutual funds and high-ticket options like PMS and AIFs. SIFs are professionally managed and follow strict rules so that investors stay protected. They aim to give better returns by tapping into areas that need expert knowledge. SIFs can invest in varied asset classes like stocks, bonds, derivatives as well as private equity. Minimum investment amount will be Rs.10 lakhs. The main advantages of SIF are Access to Differentiated Strategies, Diversification Across Asset Classes, Customised Portfolio Exposure, and Potential for Enhanced Returns. The disadvantages include High Minimum Investment Requirement, lower Liquidity at times, Exit Barriers, Market and Fund Manager Driven Risk. Some of the AMCs like SBI, quant, Edelweiss, ITI, Tata have launched SIFs and some more are in pipeline for getting the regulatory approval.
NRIs can invest in Specialized Investment Funds (SIFs) in India, provided they comply with FEMA regulations and SEBI rules. Since AMCs have recently launched the SIFs, the performance of the funds cannot be evaluated at present.
3. I want to start a mutual fund SIP in my 5-year-old daughter’s name. What’s the procedure?
Ajayan, Kochi
As per the rule, a minor can invest in mutual funds through Parents or Legal Guardian (court appointed) only. The minor must be the sole account holder represented by the parent/guardian. If the investments are in children’s schemes (designed only for investment by minor) the payment can be done either from the bank account of minor or from the account of parent/guardian.
If the investments are done in other MF schemes the payment can be made from the bank account of minor only.
Documents needed are given below:
– Minor’s age and bank proof
– A document that proves the relationship between the guardian and the child
– The guardian needs to submit all the KYC documents such as PAN, KYC etc …
When the minor becomes major (on attaining 18 years of age), he/she need to complete the KYC process in their own capacity and notify each of the concerned Mutual Fund/Financial Intermediary, by filling up a prescribed ‘Minor Attaining Majority’ form in order to be able to continue the investments (subject to any regulatory changes on these in future).
