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
- 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!