How to do KYC for Mutual Fund Online

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Get your Mutual Fund KYC done from the comfort of your home

Key Takeaways

• Know Your Client or Know Your Customer (KYC) is a verification process mandated by Indian regulatory bodies.
• KYC helps authenticate a customer’s identity with government-approved ID and address documents.
• Its objective is to curb fraudulent financial practices.
• The online KYC for Mutual Funds eliminates the need for In-person Verification (IPV).
• You can complete eKYC online through video calls where the mutual fund house representative records the video and captures your photograph.

Investments in Mutual Funds are gaining popularity among the young investors of the country. Per a report by the Association of Mutual Funds in India, the Assets Under Management (AUM) rose from INR 33 lakh Cr in the first Financial Quarter of FY 21-22 to INR 36 lakh Cr in the Second Quarter. This number will only keep growing. As such, it is imperative to correctly identify the large influx of customers on the precipice of their investment journey. Keeping these factors in mind, the Indian Government has resorted to digital means to conduct KYC for Mutual Fund. Keep reading to learn the process. 

What is KYC?

Know Your Client or Know Your Customer is an authentication process conducted by several Indian banking and non-banking financial companies (NBFCs). It enables institutions to verify the identity, address, occupation, and other relevant information of a potential customer. KYC aims to eliminate illegal activities like money laundering and terrorist financing activities, among other things.

Over the years, the finance sector has experienced unlawful activities to fabricate criminal and unethical practices. A deficit of thorough verification processes gave fraudsters the freedom to open unwarranted accounts and fund illegal activities. To overcome this obstacle, the Government of India made it mandatory for all financial institutions like banks, Securities and Exchange Board of India, SEBI registered intermediaries like brokerage houses etc., to conduct the KYC process before account opening accounts for investment purposes.

How To Do KYC Online For Mutual Funds?

Traditionally, Asset Management Companies and brokerage houses would have you visit their premises to complete the KYC process. However, today, you can complete online KYC for Mutual Funds from the comfort of your home with the Video-based Customer Identification Process (V-CIP), regulated by the RBI. Here are the steps:

1. Select your preferred Fund House to open your Mutual Fund account.
2. Register your details – name, mobile number, email ID, PAN details on the company website.
3. Keep clear, physical copies of the required documents handy along with your video-enabled device.
4. The Fund House executive or a third party will record the audio-video and capture your photograph to complete the e-KYC for Mutual Fund.

After verification, you will be deemed KYC compliant and can start your Mutual Fund investments.

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Documents Required

1. Proof of Identity
   • PAN Card
   • Driving License/Voter ID/Passport
2. Address Proof
   • Latest Bank Account Statements/Bank Passbook
   • Aadhaar Card/Aadhaar XML/Aadhaar DigiLocker
   • Passport Copy
   • Ration Card
   • Latest Electricity or Telephone Bill
   • Rental Agreement
3. Passport Size Photograph
4. Cancelled Cheque
5. Copy of your signature

Conclusion

Now that you know how to do KYC for Mutual Fund online, you can virtually complete eKYC for mutual funds. Per the New RBI regulations, customer KYC is completed via digitalisation, making the KYC process hassle-free.

Save your time and energy by investing in Mutual Funds online. Download the digibank app to start the paperless process of creating your savings account and be one step closer to investing in Mutual Funds.

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*Disclaimer: This article is for information only. We recommend you get in touch with your income tax advisor or CA for expert advice.