Mutual Fund KYC: What are the Documents Required?

Mutual Fund KYC: What is it?

KYC is a short form for "Know Your Customer", which is an important process carried out to identify a customer when he opens an account with any financial institution. In a mutual fund scenario, the KYC process verifies the identity and address of the investor with the help of relevant and original documents such as a PAN card and address proof like Voter ID, Driving License, and Aadhar Card, etc. 

In this article, we will discuss the complete process of how to do KYC online for mutual funds. Keep reading! 

Mutual Fund KYC and its importance

If you want to invest in any type of mutual fund scheme, then you must be KYC compliant. The SEBI (Securities and Exchange Board of India) has prescribed the financial institutions and intermediaries, a set of requirements under the PMLA (Prevention of Money Laundering Act) act of 2002, to know and verify their customers. 

According to the SEBI and PMLA guidelines, the SEBI authorized intermediaries like Mutual fund houses need to perform mandatory due diligence of the investors by collecting their original documents, photograph, in-person verification, and so on. Although a PAN card is a compulsory document for making investments over a particular time horizon, the investors who don't provide a PAN number, will not be able to complete their KYC process and hence can't proceed further with their investment decision. In other words, no new investment be it purchasing a mutual fund, starting a SIP, or investing a lump-sum amount can be done without the completion of the KYC procedure. 

Moreover, non-completion of the KYC process and non-updation of PAN details will result in restrictions in future transactions including withdrawal, redemption, switches, and so on. 

List of Documents for Mutual Fund KYC Process 

Below is a list of documents you need for mutual fund KYC:

• Fund Name 
• Folio Number 
• PAN card copy images of all or first holders (self-attested) 
• In the case of. Minor Folio, the self-attested (by Guardian) Pan copy of any Guardian should be provided. Further, for validation, the Date of Birth of the first holder along with a default bank account number should be provided. 
• Images should be in .jpeg/.pdf/.tiff/.tif/.jpg/.png format and the maximum size should be 1MB for online KYC for mutual funds. 

How to Do Mutual Fund KYC? 

There are basically two ways in which you can get your mutual funds KYC done: Offline and Online. Let's discuss both ways in detail:

Offline KYC for Mutual Funds 

Again, there are two ways to get your MF KYC done offline:

1. With KRA (KYC Registration Agency): CSDL Ventures Ltd. is the authorized body for conducting the KYC process in the mutual fund industry. Following are the steps you need to follow to complete your KYC process offline with KRA:

• Download the KYC form from the CSDL website. 
• Fill it out and attach the required documents like photographs, PAN card, address proof, etc. Make sure that your documents are valid and self-attested. 
• Submit all these documents and the KYC application form to the KRA by visiting their office. 

        2. With Intermediaries: If you're planning to invest on a particular investment platform or any fund house directly, then they will provide you with a KYC form in case you're not already KYC registered. These intermediaries are already registered with a KRA. Once you fill and submit this form, you'll become KYC compliant for the process. 

Online KYC for Mutual Funds 

There are again two ways to perform mutual funds KYC online:

1. Online Mutual Fund KYC Check with KRA 

In the online process, the KYC needs to be done individually with any intermediary platform, or fund house you're planning to invest in. 

The online KYC is similar to the offline process, but the only difference is, that you don't have to go through the cumbersome process of visiting the offices for submitting the documents. You can easily get everything done online. 

Below are the steps you need to follow:

• Visit the website of any KRA. 
• Create your account and fill out the online form by entering the correct details. 
• You'll be asked to provide your valid phone number, PAN card, and other details. 
• Upload self-attested copies of all the required documents. 

Once done, you'll be provided with a KYC identification number which you can share with any mutual fund house or intermediary you are planning to invest with. 

       2. Aadhar Card KYC 

While the Aadhar card is not compulsory for KYC anymore, many investors still prefer going this way as it is more straightforward. Many investment platforms and fund houses offer Aadhar-based KYC systems. 

How to Check KYC Status Online? 

Today, it's very easy to check your KYC registration status online. All you need is to follow these simple steps:

• Visit cvlkra.com
• Enter PAN and other details 
• Once done, you'll be provided with your KYC status 

Bottom Line 

KYC is an important process that every investor has to go through before participating in transactions with any financial institution. We have discussed all the details you need to know about Mutual fund KYC. We hope it helps!