You certainly have a dream destination on your mind. And most likely the place is international. Of course, money is the most important thing that you need to travel to a different country but to actually board your flight, you need a boarding pass.
You can think of KYC or Know Your Customer as a boarding pass and mutual funds as the vehicle to reach your financial destination. Just as you can’t get on a plane without a boarding pass, you can’t invest in mutual funds without completing your KYC.
Unlike boarding passes, you don’t need a new KYC for every investment. KYC is a one-time mandatory process for investing in mutual funds. You submit your identity proof among other things to help the fund house establish your identity. This may seem like a formality but indeed it helps you avoid falling prey to online frauds.
Yes, that’s how important KYC for mutual funds is.
Are you a new investor wanting to leverage mutual funds for your financial planning? Follow these simple steps to complete your KYC online.
Meaning of KYC for mutual funds
Now that you know how important MF KYC or online mutual fund KYC is, let us understand its meaning in detail. KYC for mutual funds refers to the process through which asset management companies verify and authenticate your identity and financial background, before you start the investment process. Online mutual fund KYC serves as a safeguard against money laundering, fraud, and identity theft in the mutual fund industry and, owing to these important aspects, it is a regulatory requirement imposed by financial regulatory authorities to ensure the integrity of the investment process and protect investors' interests.
The KYC process involves collecting and verifying various documents and information provided by investors, including proof of identity (such as PAN card, Aadhaar card, passport), proof of address (such as utility bills, bank statements), and other relevant financial information. The objective of mutual fund KYC is to establish the identity, financial status, and risk profile of investors. Once you complete the KYC process, you will receive a unique KYC identification number serving as proof of your compliance and you can use this ID for future investments in mutual funds. This will also make it easier for you to collate all your investments in one place, ensuring seamless portfolio management.
Step 1: PAN card check
Visit the website of the asset management company, click on ‘new investor’, and enter your PAN. When you see the ‘KYC details not found’ window, enter your basic details such as your full name, email id, phone number, etc. You will then get a list of documents required for becoming KYC-compliant.
Step 2: Identity verification
Upload your PAN Card and check if the details captured through Optical Character Recognition are correct. If not, rectify them manually.
Step 3: Address verification
Upload your address proof such as your passport, voter ID card or driving licence. Check the details and rectify if need be. You can even change your communication address, if you want to, by uploading a supporting address proof.
Step 4: Bank verification
Upload the scanned copy of your cancelled cheque. Once you give your consent, the asset management company will transfer a certain amount to your bank account. Enter the amount transferred to you for completing bank verification.
Step 5: Updating personal details + declarations
Add your personal details such as your gender, marital status, etc. Next, fill the declaration form for FATCA, CRS and related person details.
Step 6: Signature verification
Upload your signature and confirm if it is the copy of your hand signature and if you give your consent for linking it with your email id as well as using it as your digital signature.
Step 7: Photo verification
Click on start. Within 5 seconds, your device will turn on the camera mode. You might have to give permission for the camera to start. Once done, click your selfie.
Step 8: Video verification
Again, click on start, look into the camera holding your PAN card and read the digits given on the screen within the given time limit.
Step 9: Signing the contract
Complete the contract by signing. You can either reuse your uploaded signature or create a new signature. Preview the contract and sign the document again.
Your KYC application will then be submitted. Once your application is successfully processed, you will be notified about being KYC-compliant within 15 working days with your KYC number.
Done! You can now invest in mutual funds and move towards your dreams.
An investor education initiative by Edelweiss Mutual Fund
All Mutual Fund Investors have to go through a onetime KYC process. Investor should deal only with Registered Mutual Fund (RMF). For more info on KYC, RMF and procedure to lodge/redress any complaints, visit -https://www.edelweissmf.com/kyc-norms
MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY
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MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.
