How to do E-KYC for Mutual Fund Investments-Online KYC for Mutual Fund

When you plan to invest in a mutual fund, the first thing you need to do is complete the one-time customer identification process, which is Know Your Customer. You don't need to visit any fund house or registrar to do KYC. It is not easy to do the KYC process online. Read further to know how you can do e-KYC for mutual fund investments.

Getting Started with E-KYC for Mutual Fund Investments

Know Your Customer is a customer identification process which carried out only once and it is a mandatory requirement for initiating mutual fund investment, as per the Securities and Exchange Board of India (SEBI) guideline. The primary reason for imposing this mandate is to eliminate fraudulent activities.

The Unique Identification Authority of India (UIDAI) offers KYC identity to Indians, which the government validates for different purposes such as opening a bank account, investing mutual funds, etc. KYC offers the financial organisation with the verified identity of the applicant. It serves a proof of authentication for the investor.

What is e-KYC?

The process of completing the KYC registration online is known as e-KYC. The procedure removes the hassles of physically visiting the office of a KYC Registration Agency or KRA like CAMS, Karvy, etc. as it can be done online. It reduces time and efforts at the same time. One of the most important documents that you will need is the AADHAR card if you want to get KYC online. ekyc for mutual fund also requires your mobile number for registration. Along with that, you will need passport photos and personalises cheque.

e-KYC offers benefits such as paperless documentation, no counterfeiting of data, easy account opening facility, no offline verification, etc. Security is another benefit that KYC offers. An investor's details such as birth date, name, gender, address, number, etc. are only offered to the organisation where the investor wants to open an account. No other company can access it without the investor's authorisation.

You can do the ekyc mutual fund process by visiting online sites of KRAs such as Central Depository Services Limited (CSDL), National Securities Depository Limited (NSDL), etc. and it doesn't require a lot of time, documents, or efforts.

How to Do Online KYC for Mutual Funds

When you want to invest in mutual funds, you will have to complete the one-time authentication process. Online KYC for mutual funds saves your time, and you can do it very quickly. e-KYC reduces the cases of fraudsters as an unauthorised investor can't invest in any funds.

Steps for Doing E-KYC for Mutual Funds

The process of opening a mutual fund account online is easy-

  • Visit the website of the fund organisation

  • Open the account with your details such as name, e-mail ID, phone number etc.

  • Verify the OTP

  • Scan the identity and address documents

Joint account holders, resident and non-resident citizens, power of attorney holders, minor guardian, etc. need to have KYC registration to invest in mutual funds. You can also initiate KYC offline. For that, you must, visit the office of the fund organisation and fill in the KYC form with your details. However, the offline process can take time and efforts.