It is mandatory to be Know Your Customer (KYC) compliant if you are investing in the Mutual Funds for the FIRST TIME. It is a one-time process that every mutual fund investor needs to do, to be able to invest in mutual funds.

Why KYC is important?

The main aim of KYC process is to prevent capital markets from being used intentionally or unintentionally by criminal elements for money laundering activities. Money laundering refers to converting money that is earned through illegal ways into legal money by passing it through various banking channels. This makes it difficult for authorities to track the ‘dirty money’ to its illegal origins.

Documents required for completing the KYC process:

1. A passport size photograph
2. PAN Card
3. Identity Proof such as Passport, Voter ID, Driving license, or PAN Card with photograph
4. Address Proof - Passport, Voter ID, Driving license, Ration Card, or Utility Bills such as landline telephone bill, electricity bill etc.

You need to submit the self-attested copies and produce originals for verification.

How to complete the KYC process

• Download the KYC form, which is available on websites of all fund houses, Registrar and Transfer Agents (RTAs) and Association of Mutual Funds in India (AMFI).
• You can submit your completed form along with self attested copies of supporting documents to:
  • Your fund house’s office or
  • Any branch of the Registrar & Transfer Agents (RTAs) such as Computer Age Management Services Ltd (CAMS), Karvy Computershare etc

Don’t forget to carry your original documents for verification purpose. An important point to keep in mind is that your KYC would be done only if you are investing in any mutual fund scheme. You cannot do KYC first and invest at a later date. Both KYC and mutual fund investment has to be done together.

Remember KYC is just a onetime process, once completed you can invest in any scheme provided by any of the fund houses.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.