Know your Customer or KYC is in an important process to which has to be carried out by every prospective investor before starting their investment journey. KYC information is required by All Asset Management Companies (AMCs) to verify and maintain records of identities and addresses investors (clients) in accordance with the Prevention of Money Laundering Act, 2002. KYC for mutual fund is a mandatory requirement for making investments in mutual funds schemes in India.
There is a common perception that KYC is a complicated procedure. While it is a procedure which has multiple steps, it is not difficult. It just requires investors to be prompt about providing their details and documents to get the process done at the earliest. One must also keep in mind that KYC is done for the benefit of the investors, to maintain records and protect the investments. Let us understand how KYC can be carried out in a few simple steps
- To download the Mutual Fund KYC Form you can visit any Mutual Fund Company, also know an Asset Management Company’s website.Once you have picked the scheme you wish to invest in, download the form from the website.Investors can also visit the websites of the registrar and transfer agencies (R&T Agent) e.g. CAMS, Sundaram BNP Paribas, Franklin Templeton and Karvy and download the KYC form.Alternatively, you can also approach your Mutual Fund advisor to provide the KYC form and assist you in completing the procedure.
- The Mutual Fund KYC form is very easy to understand. The instructions to fill out the form are a part of the form. You can approach aMutual Fund advisor for assistance. Affix your colour photograph on the application form in the space mentioned and sign across, partially on the form and rest on the photo.
You also need to provide self-attested copies of the following documents:-
- Identity proof (Either one from PAN card, passport, driving license, voter ID card, Aadhaar card or any other Government ID Card etc.)
- Address proof (Either one from Passport, driving license, voter ID card, Aadhaar card, electricity bill, property tax bill etc.)
- PAN card
- Linking of Aadhar to your mutual funds is now mandatory, therefore, while making KYC you can provide this detail too.
- The filled KYC form, along with the photograph and the self-attested documents can be submitted in the AMC office, the R&T Agents or to the Mutual Fund advisor. You should carry the identity and address proof originals with you when you go to submit the KYC documents for in-person verification. However, please note that yourAMFI registered mutual fund advisor is also authorized to conduct in-person verification. So if you are getting your KYC done through a financial advisor, you need not need to visit the AMC or R&TAgents office for in-person verification.
- You can track your KYC for mutual fund status by going to https://www.cvlkra.com/kycpaninquiry.aspx – Enter your Permanent Account Number (PAN) and you will know if your KYC is verified or not.
Once the KYC is verified you can start investing in mutual funds. Existing mutual fund investors are likely to have fulfilled the KYC requirements. However, if you have not made any mutual fund transaction for a long time, you should also check your KYC status by going to CDSL Ventures Limited website https://www.cvlkra.com/kycpaninquiry.aspx and check your KYC by entering your PAN. If yourKYC is not verified, then you should submit fresh KYC form along with necessary documents.
Still, if you have any doubts, you should contact us and we will help you do your KYC for Mutual Fund. Having a Mutual Fund advisor while making investments is always a good option, to not only help you make the initial investments but also to help you make right investment choices and make changes to the investments as and when required. Making investments and staying invested and processes of a lifetime and its best to keep taking advice of an individual who has domain knowledge and experience.
Now that you are ready to invest in mutual funds, you must read what are mutual funds in India and What is a asset management company and how do they work