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Guide to Mutual Funds

What are the KYC requirements?

KYC, or Know Your Customer, is mandatory for individuals seeking financial services like opening bank accounts, buying insurance, getting loans, or investing in mutual funds. It ensures compliance with anti-money laundering laws.

Role of KYC in Mutual Fund Investing:

  • Mutual funds require KYC to confirm the legitimacy of investments and ensure compliance with regulations.
  • Investors must provide documents like PAN card, address proof, proof of name, bank details, and photographs.
  • KYC is also necessary for joint accounts, power of attorney holders, NRIs/PIOs, and minors.

How to Complete Mutual Fund KYC:

Offline Method:

  • Offline KYC with KRA: CDSL Ventures Ltd. manages the KYC process for mutual fund investors. They handle customer profiling and record-keeping.

  • Offline KYC with Intermediary/Platform: If you're investing through a fund house or investment platform, they'll give you a KYC form if you're not already registered. They'll be registered with a KYC Registration Agency (KRA). Fill out the form, and your PAN-based KYC will be done with the KRA.

Online Method:

  • Online KYC with KRA: You can complete KYC online through the mutual fund house, intermediary, or platform you choose. Just fill out the online form and upload the required documents. This saves you the hassle of visiting an office.

  • Aadhaar-based KYC: Though Aadhaar is no longer mandatory, many investors still prefer it. Most fund houses and platforms offer Aadhaar-based KYC. After completing KYC, you'll receive a KYC identification number. Share this with your chosen investment platform to start investing.

Documents Required:

  • PAN Card: Your PAN number is necessary for your mutual fund KYC.

  • Identity and address proof:  You can use documents like your driver’s license, passport, or Aadhaar card. Alternatively, you can use your electricity bills for address proof, but you'll need another document for your ID proof.

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