Mutual Fund KYC Process

Here is the video that explains about KYC process to invest in Mutual Funds:

Video Transcript:

Sharmila : I would love to grow my wealth by investing in Mutual funds. I met my investment advisor with a request to suggest the best fund for me to invest.

Nirmal : The first step to start investing in MF is to complete the KYC process

Sharmila: What is KYC and why is it required?

Nirmal: KYC is mandatory for investing into Mutual Funds. Mutual Funds have to complete due diligence of their investors through the KYC process. The process includes verification of identity-address-financial status and other demographic information. The KYC is a norm mandated by the SEBI.

Sharmila: How does one complete KYC?

Nirmal: There are two ways to complete KYC.
You can download the KYC application form, from the website of any KYC Registration Agency (KRA) like CAMSKRA, or http://www.camsonline.com or  from the Mutual Fund websites. You have to submit the completed form along with 1ID and 1 address proof

  • Passport/
  • Ration Card/
  • Registered Lease or
  • Sale Agreement of Residence/
  • Driving License/Voter ID/
  • Latest Bank Statement or Passbook – along with one passport size color photo duly signed on it.

Sharmila : What happens after these submissions?

Nirmal: The documents that you submit are verified against the originals and an in person verification is completed. Once this is done your records are submitted to KRA. Bingo – You can go ahead and start building your wealth.

Sharmila:  You said there are two ways, what’s the other way?

Nirmal: The other way is even more convenient. This is a recent facility introduced by CAMS , where you can use your  AADHAR to complete KYC.  This super convenient facility is called eKYC. You can do this by visiting http://www.camsonline.com or visit any one of our service centers.
No forms, No proofs No documents.

Sharmila:  Sounds good. So, when can I start investing after eKYC?

Nirmal:  Immediately.. Hard to believe? Your KYC is stored at the KRA for all your future transactions.

Sharmila: Are you saying that I need not repeat KYC if I choose to invest in another mutual fund?

Nirmal: Yes. You are correct. You do not have to repeat KYC.

Sharmila: What if I change my address? Do I have to separately notify all mutual funds on this?

Nirmal :No. You need to intimate only the KRA who in turn will update all your mutual fund accounts.

Sharmila: Wow. I never thought  that KYC process was so simple!

Advertisements

Published by

Sudarshan Ranganthan

Breaths Investments, Suggests Wealth Creation Ideas, Lives on Law Of Attraction

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s