Investing in Mutual Funds in India is one of the most straight forward processes possible, and is protected by RBI and SEBI regulations to ensure safety of investor capital from fraud.
Mutual Fund Investment Requirements:
PAN Card of Investor (or Guardian in case of a minor)
E-mail ID and Mobile Number (preferably a private e-mail ID and mobile number, which are not dependent on investor's current workplace)
Aadhar Card
An Aadhar linked mobile number is required for the online KYC process
Bank Account of Investor (or Guardian in case of a minor)
A cancelled cheque is required for the KYC process
Online access to the bank account with third party transactions allowed to make investments online
FATCA (Foreign Account Tax Compliance Act) Information:
Gross Income Tax Slab, Occupation, Politically Exposed Status and Place of Birth
Nominee Information:
Name of Nominee, Date of Birth, Relationship with Investor and Address
PAN Card: All Mutual Fund investments are linked to the PAN of the investor (or PAN of Guardian in case of a minor)
KYC Process: Any new Mutual Fund investor has to complete a centralized KYC process designed to authenticate his/her identity to all Mutual Fund AMCs.
The KYC process can be initiated currently with any one of five vendors (CVL, CAMS, KARVY, NDML, DOTEX) to be recognized across all Mutual Fund AMCs.
You can check the status of your KYC across the five vendors using the "KYC Enquiry" facility available at https://www.cvlkra.com/
In case your KYC is "Not Available" across any of the five vendors, a KYC process can be initiated both online or offline.
Online:
An investor can self initiate his/her online KYC process using the following links:
The online process requires an investor to submit soft copies of his/her PAN Card, Aadhar Card, Cancelled Cheque of Bank Account and Full Signature.
During the online KYC process, the vendor may ask for one or more OTP confirmations sent to the investor's mobile number linked with his/her Aadhar. Your KYC application will not be submitted online without at least one OTP confirmation using your Aadhar linked mobile number.
Some vendors might also require an investor to confirm identity with a live image and a short video, similar to a digital signature (DSC) process.
Offline:
The offline process requires an investor to fill a KYC form and submit attested photocopies of his/her PAN Card, Aadhar Card and Cancelled Cheque of Bank Account. These documents can be submitted to KYC centers of any of the vendors.
An investor can also submit the KYC documents with any of the Mutual Fund AMCs they wish to initiate an investment with, along with a filled transaction form and cheque for the amount they wish to invest.
The KYC generally takes 15-30 days to be processed by the vendor. However, all Mutual Fund AMCs allow investors to initiate investments while their KYC is in process, assuming the KYC process will be successfully approved by the vendor.
MF Transactions: Investors can invest in Mutual Funds using 3 different methods
MF Distributors can initiate online investments on behalf of their clients using multiple platforms available to them. These platforms offer different services to clients based on the preferences of the client.
KFintech: Invest in selected Mutual Fund AMCs for same day NAV by making online bank account payments prior to 3.00 PM.
CAMS: Invest in selected Mutual Fund AMCs for same day NAV by making online bank account payments prior to 3.00 PM.
NSE MF Platform: Invest in all Mutual Fund AMCs for next day (T+1) NAV by making online bank account payments prior to 3.00 PM, or use a ACH or debit mandate with your bank account for T+2 NAV.
BSE STAR MF Platform: Invest in all Mutual Fund AMCs for next day (T+1) NAV by making online bank account payments prior to 3.00 PM, or use a ACH or debit mandate with your bank account for T+2 NAV.
Direct on AMC Website: Invest in all Mutual Fund AMCs for same or next day (T+1) NAV by making online bank account payments prior to 3.00 PM.
Third Party Apps or Websites (e.g., Zerodha, Groww): Invest in all Mutual Fund AMCs for same or next day (T+1) NAV by making online bank account payments prior to 3.00 PM.