An investor already has a folio in a mutual fund scheme where he is a joint holder. Now he wants to do additional investments in the same scheme as a sole holder. How can he make the change?

Practice question from Nism VA Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

He will have to do the investments under a new folio and select the mode of holding as single

Correct answer
B

He can do the investments by mentioning the mode of holding in the application as single to apply only for the fresh investments being made
C

He can do the investment by changing the mode of holding for the additional units after the investment has been made

Why this is the answer

Once a folio is created with a joint holding, it cannot be modified to a single holding, except in the case of the death of a holder. The investor must create a new folio with the mode of holding as "single" for the new investment.

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