Smart things to know: Power of attorney in Mutual funds

Power of attorney in Mutual funds

1. In order to conduct folios and conduct transactions, Power of attorney is designated to a person on behalf of mutual funds.
2.  To enable advisors, accountants or close relatives to operate their account, generally senior citizens and Non-residents use power of attorney.
3.  With the full consent of all units, the power of attorney is granted. The proper process takes place, and the signature is done on a prescribed format, which has to be notarized.
4. To verify the transaction in a mutual fund, the notarized power of attorney, documents along with both sets of signatures is to be submitted.
5. The power of attorney has very limited set of powers as defined in the agreement. Besides that, the holder cannot make any modifications in to that.