Different modes of holding mutual funds

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Modes of holding mutual funds
The mode of holding is crucial for accessibility, management and transfer of mutual funds. The primary modes are single, joint, and either or survivor, each with its specific use case and operational nuances.

Single holding
Single holding means that the mutual fund investment is owned by one individual. This mode offers simplicity and full control to the investor, making it suitable for independent investors who want complete autonomy over their investments. Only the investor can access and manage the account.

Joint holding
Joint holding involves two or more individuals owning the mutual fund account together. It requires consensus from all joint holders for any transactions or changes, with all holders having access to the account. Transactions typically require signatures or authorisation from all parties. Joint holding is suited for couples, business partners, or family members who wish to manage investments collaboratively.

Either or survivor
The either or survivor mode allows either account holder to operate the mutual fund account independently. Ideal for couples or family members, this mode offers flexibility in management and ensures a smooth transition if one holder dies. Both holders have full access and can conduct transactions without the other’s consent.

Succession

• In single holding, if the investor dies, heirs must provide legal documents, such as a will or probate, to claim the funds, which can be time-consuming.
• In joint holding, if one holder dies, the surviving