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Secure your investment with a nomination

business Updated: Oct 22, 2008 20:56 IST
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One of the most important steps in safeguarding and ensuring continued operability of one’s investment is by ensuring nomination. In case of any unfortunate event or when an individual is unable to operate his investment, nomination ensures that the investment amount goes to the right person.

Nature of nomination
Nomination is a process where an individual mentions the person or persons who will get the investment amount in case of his death.

The need for nomination is acute when the investment is in a single name and in this case provides a layer of safety for the investment. This ensures that there is no problem with the investment at a later date and it is part of the process of ensuring that there is proper management of investment. Nomination is a critical part of documentation that needs to be done with any investment.

Missing out
If an investor has not made any nomination, he can remedy the situation by taking proactive steps. He needs to complete the necessary process for having nomination.

There can be cases where a person might have done a nomination but this is cancelled out or has not been recorded properly. To remedy such a situation, an individual has to keep a regular check to ensure that there is some nomination present on his investment. This will help him from being left out of the entire process.

Process of nomination
The nomination process is not complicated like most other paper works. It usually consists of giving the name and address of the person who is the nominee.

When a person wants to name more than one nominee to his investment, he has to name them on the form with respective percentage share that they will get. Some nomination forms could require photograph of the nominee and his signature. In most situations, a specific form needs to be filled at the time of making the nomination.