KYC compliance is mandatory for investments in mutual funds in India. If you are planning to invest in mutual funds then you need to comply with the KYC norms. KYC compliance is mandatory under the Prevention of Money Laundering Act (PMLA). In this post, I will discuss the KYC process in mutual fund and how to do KYC for mutual fund investment.
Table of Contents
What is KYC?
KYC is an acronym for “Know Your Customer” and is a popular term used in banking and financial institutions. It is a procedure followed by financial institutions for verifying the identity and address of the customers. It establishes a customer’s identity and address through relevant supporting documents and In-Person Verification.
KYC Process in Mutual Fund
KYC verification is a one-time process that you need to do for mutual funds’ investments. You can invest and transact in any fund once you are KYC complied.
The process verifies your identity and address as an investor. KYC compliance is mandatory under the PMLA, 2002. You can get it done either online or offline.
Documents required for KYC
You need to submit the self-attested copies of the below-mentioned documents. You also need to produce originals for verification.
1. Proof of identity
Anyone document from Voters ID card, Aadhaar card, Driving license, Passport
2. Proof of address
Anyone document from Voters ID card, Aadhaar card, Driving license, Passport, Ration card, Bank account statement or passbook, Utility bills such as gas, telephone or electricity
3. PAN card
4. Passport size photograph
How to do KYC for Mutual Fund Investments?
There are two ways you can complete the KYC process in the mutual funds.
1. Offline KYC process
2. Online KYC process (eKYC)
Offline KYC process
In this process, you need to complete your KYC compliance by visiting a Fund House (AMC) office or to any RTA (CAMS, Karvy) office or any independent financial advisor.
Take the KYC application form. Fill up the form as instructed. Attach self-attested copies of the required documents and submit them. Also, carry the original documents for in-person verification (IPV).
You can also download the KYC form from any of the AMC’s websites or R&Ts websites. And take a print out of it. Alternatively, you can also visit the CDSL Ventures Limited website. And download it from the “Downloads” section of this portal.
Check websites of respective AMCs for their address.
Online KYC process (eKYC)
eKYC is a paperless version of the KYC process for investing in mutual funds.
The entire procedure is online. You can do it in three ways.
1. In this process, some fund houses allow in-person-verification (IPV) through a webcam or smartphone. Where you have to produce your original identity and address proof.
To complete this PAN-based Video KYC at your convenience. Visit online to the fund house website. Fill the online form. Scan and upload necessary documents. Verify your identity through a video call.
2. You can complete Aadhaar-based eKYC through SEBI-registered mutual funds distributors or advisors who have registered themselves with a KYC user agency (KUA) as a sub-KUA). The KUA would, in turn, be registered with UIDAI.
In this method, you need to visit the portal of KUA. Enter your Aadhaar number or virtual Id (VID). You will receive OTP from UIDAI on your phone. Enter the OTP on the KUA portal. Fill any additional details required as per the rules and you will be verified.
3. In this method, you will be able to complete the eKYC on a registered or whitelisted device. It is operated by the intermediary using biometric details. Here, the intermediary would not allowed to store the Aadhar number of the user.
How to check the status of your KYC
You may check your KYC status by entering your PAN number with any of the KYC Registration Agency.
1. NSE KRA website
2. CAMS KRA website
3. Karvy KRA website
4. NSDL KRA website
5. CVL KRA website
You can also download the KYC application form the above-given websites. And do your KYC for mutual fund investment. Note that there are no fees for KYC registration.
Final Thoughts
KYC is a one-time process mandated by SEBI to prevent fraud. The process of eKYC makes it easy for anyone to invest in mutual funds. No documentation or paperwork required. So get your eKYC done with just PAN and Aadhaar card if you wish to invest in mutual funds.
Note: This post was originally published on June 26, 2018.
How to do KYC for Mutual Fund Investments? KYC Process in Mutual Fund
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This post really helped me out, i wasn’t knowing where to check my KYC exactly, thanks and keep doing the same and keep helping people.
It is a very informative article.
Thank u so much for posting this information
For best review and survey of product and service
Thanks for the information.
Very informative article.