Nomination is done during the purchasing of units with the initial application. If not, it can also be done subsequently after the purchase of the units. The applicant is required to fill in the ‘nomination’ section in the application form at the time of making investments in mutual funds. When the nomination is made after the purchase, the owner of the units will need to fill out a nomination form. It is not a permanent decision, meaning mutual funds allow to change of the nominee at any time and numerous times.\r\rComing to the essential part of the nomination, we will now discuss the necessity of specifying a nominee. People often ask whether it is mandatory for a unitholder to register a nominee. The Security and Exchange Board of India (SEBI) has issued a circular, implying that nominee specification will only be an option. Earlier, it was compulsory to provide at least one nominee of the units of mutual funds. But recently, on the 15th of July, a significant change was observed, which allows the investors to keep their investment units without a nominee. Opting out of nomination is also an option for mutual fund investors. The choice is to be signed on a declaration form.