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How to Check Your Mutual Fund KYC Status?

When it comes to mutual fund investment, Know Your Customer or KYC is the first step towards it. Let us know about KYC and how you can check the status of KYC for mutual fund investment in this article.

What is KYC in Mutual Fund

When a person wants to open an account in a bank, the Unique Identification Authority of India (UIDAI) asks for the authenticated identity of a person. This verified identity is known as Know Your Customer or KYC and is validated by the government of India. However, it is not just banking sector that demand KYC, even opening a mutual fund account requires it. You can initiate mutual fund investment only when you complete the process of KYC.

Why is KYC Necessary?

The KYC process is carried out by a KYC Registration Agency such as NSE, CAMS, CVL, NSDL. Etc. These agencies verify your identity, occupation, name, address, etc. Know Your Customer or KYC is beneficial to you as well as the financial organisations. While it offers security that your identity is not revealed to any entity but the end-user, it provides financial organisations protection against fraudsters. KYC ensures them that the investor is a verified person and not a money launderer.

How to Submit Documents for KYC in Mutual Funds

The KYC documents must be submitted when you start investing in a mutual fund. The KYC Registration Agency (KRA), a SEBI-registered entity, registers your data and offers it to fund houses and intermediaries.

However, you don't have to submit KYC again if you wish to open a different mutual fund account as the KRA registers your identity the first time. The KRA itself offers KYC on your behalf to other organisations without you having to do anything.

A mutual fund journey of an investor begins with registering for KYC. It is only after the completion of your KYC; you can go ahead and start trading.

The importance of KYC-

The Securities and Exchange Board of India (SEBI) has made it necessary for mutual fund investors to register for KYC with a KYC Registration Agency. The implementation is supposed to create reliability and uniformity across investment organisations while making it easier for people to invest in different mutual funds. The duplication of the documents is also out of the picture as KRA maintains individua KYCs in a single database which fund companies and intermediaries can access.

Main 2 Types of KYC Procedures-

Offline-

  • Fill in the KYC form available on any KRA website

  • Visit the KRA's office and hand them over the hard copy with all the necessary details

  • You can also take help of your mutual fund company

  • You can also take help of your mutual fund company

Online-

  • Visit the website of the KRA

  • Fill the documents with your details

  • You will need your mobile number for registration

  • Verify your number with the OTP that you get

  • Scan your Aadhar

How to Check your KYC Status?

PAN card details are necessary to check the status of mutual fund KYC.

  • Visit the website of the KRA from where you have registered for KYC. Enter your PAN to find out your mutual funds KYC status.

  • You are registered if you view these notifications- 'KYC Verified', 'In Process', or 'Registered'.

  • However, if your KYC status displays 'Need more data', then you will have to submit the details the KRA is asking you.

  • Keep your PAN details, address details such as recent passbook, passport, etc. to register for KYC handy as you will need them.

From opening a bank account to applying for a loan, KYC is a necessary criterion. A lot of financial necessities are dependent on KYC. Get KYC registration and ensure you have filled in proper details.