Power Of Attorney by MyAnmol published on 2018-02-27T11:14:15Z Investing in Mutual Fund through Power of Attorney Under special situations an investor will prefer to invest in Mutual Funds through Power of Attorney. Now let us see some examples of special situations: • When you are a frequent traveler. • When you are not well. • When you want your investments to be managed by your spouse or a well wisher. • When you become an NRI. Measures to be taken while investing in Mutual Fund through Power of Attorney. 1. Giving Power of Attorney Give Power of Attorney only to a right person. Generally, it is said that Power of Attorney should not be given to a Mutual Fund Agent. There exist many situations, where agents have misused this opportunity. You can give a restricted POA which states that the agent can transact only in mutual fund and not any other area of assets. The older formats of POA consisted only signatures of POA giver and not the acceptor. Hence, Mutual Fund companies do not accept POA without the acceptor’s signature. There are no mandatory recommendations that a POA should be registered. All you need to do is be extra cautious while selecting the right person to give POA. 2. KYC for both: Know Your Customer (KYC) is mandatory and is regulated which is to be followed by every investor. To transact in Mutual Fund through a Power of Attorney both the acceptor as well as the investor should have completed their KYC procedure. 3. When opening a new MF folio: Investor can register the POA, when opening a fresh mutual fund folio. All he needs to do is: • Write the name of the holder in the specified column on the application form. • Mention the PAN number of the POA holder. • Attach the KYC of the POA holder. • Enclose the notarized copy of the POA. 4. Registering POA in an existing MF folio: Investor also has an opportunity to register the POA in an existing Mutual Fund folio by giving a separate letter. All he needs to mention is: • Details of the POA holder. • A request to register the POA in the folio. • Pan card copy of the POA holder. • KYC copy of the POA holder. • Notarized POA. 5. Cancelling POA in a Mutual Fund folio: An investor can easily cancel the POA by giving a letter to a Mutual Fund Company. The registration as well as the cancellation both will be reflected in the account statement as a non-financial transaction. 6. A Final Note: Investors are advised to give POA preferably to their spouse to transact on behalf of them. This becomes handy when you suddenly fall sick or need to travel immediately. To conclude: Power of Attorney helps in the smooth execution of your investment decision and provides alternatives to an investor to hand over the POA either to a Mutual Fund agent or his spouse. Hence, during contingencies and emergency POA is of immense help to an investor.