How to Do Online KYC for a Mutual Fund in 5 Simple Steps?

The Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI) mandate that all Indian financial institutions verify the identity and address of all customers who wish to carry out any transactions with them. This process is known as KYC or ‘know your customer.’

Online KYC is an easy, streamlined method to establish the authenticity of the customer. Read on to find out how you can complete your online KYC after signing up on Moneyfy in just five simple steps.

What Do You Need Before Starting Mutual Fund KYC?

Keep the following ready before beginning MF KYC online:

• Moneyfy app: Download the app from the Google Play Store or App Store.
• Mobile number authentication: Enter the mobile number and verify with an OTP.
• Registration: Enter your personal details, like name and email ID. Ensure that the name is as mentioned on the PAN card.

After completing registration, you must do the following:

• Bank account number and IFSC code: Provide bank account details and verify with either a cancelled cheque or the penny drop system.

KYC Documents & Process

How to Do KYC for a Mutual Fund?

Completing your KYC has never been easier. You can complete your mutual fund KYC online from the comfort of your home. All you need to do is keep your documents ready for uploading and follow the steps below.

Step 1: Upload your PAN Card and Address Proof

Your PAN Card serves as your primary identity proof. Click a picture of your PAN Card or scan it via your phone. Make sure that it is not crooked, cropped, or out of focus. If you think that the photo you have clicked is unsatisfactory, try again and upload a new one.

You can provide your Voter ID, Aadhaar Card, driving license, or passport as your address proof. You need to upload both the front and back of these documents.

Click a picture of the document you wish to upload. Make sure that all details are visible and the image is not blurred or crooked. Clarity is of utmost importance when uploading pictures online for your mutual fund KYC. This is because these documents are legally required for you to be able to operate your account.

Step 2: Upload your selfie

Take a selfie from the front camera of your smartphone. The photo needs to be in focus, and your face should be in the centre of the frame. Make sure there is adequate lighting and your face is clearly visible.

Step 3: Upload your signature

Mark your signature clearly on a piece of unruled white paper. Taking a plain sheet of paper for your signature eliminates any possibility of distortion. After this, take a photograph of the signed piece of paper and crop it so that your signature is clearly visible. You can try this as many times as you want. When you are happy with the result, upload the image to the app.

Step 4: Upload your selfie video

Access the front camera of your phone and start recording a video. Make sure your face is in focus and in the centre of the frame, with adequate lighting. Then read out the numbers on your screen. The purpose of this exercise is to authenticate the identity of the account holder. It helps keep your account secure.

Step 5: Complete the Aadhar-based E-sign

Once you’ve uploaded the necessary paperwork, you will receive an OTP on your Aadhar-linked mobile number. Once you enter the OTP in the form, it is automatically sent for review. This is your Aadhaar-based electronic signature. Your account will be opened in 5-7 days!

By following the steps above, you now know how to do KYC for mutual fund online.

Why Is KYC Compulsory?

The reason why the government mandates KYC is to safeguard against instances of money laundering and fraud. It is to make sure that investors are using their real identities and can be tracked in case of any default.

In the case of mutual funds, an asset manager or an investment management company builds a varied investment portfolio on behalf of the investors. Without you completing your online KYC for mutual funds, they cannot access your money or act on your behalf legally.

How Can NRIs Update Their KYC Status for Mutual Fund Investments?

NRIs who want to invest in Indian fund houses can update their KYC status even if they don’t have Aadhaar cards. This can be done online or offline. To update their eKYC for mutual funds, they need to follow these steps:

1. Contact the fund house or AMC: NRIs must first contact the fund houses or Asset Management Companies (AMCs) they wish to invest in.
2. Submit the required documents: These include a copy of their passport, Persons of Indian Origin (PIO) certificate or Overseas Citizenship of India (OCI) card, and proof of address. It is important to note that proof of overseas address and a passport are mandatory for KYC compliance.
3. Fill out the necessary forms: AMCs will provide NRIs with forms to fill out for KYC verification.
4. Complete verification: Document attestation and in-person verification will then be completed by visiting the AMC branch of the funds they are investing in.

Conclusion

Complete your eKYC for mutual funds online to start investing. With an easy, 100% digitized KYC process that you can complete through your phone, you will be investment-ready in just 5-7 days. If you are a new investor hoping to generate wealth through mutual funds, download Tata Moneyfy’s mutual fund app. You can set a customized goal for yourself and accomplish it by investing gradually through SIPs, starting at Rs. 500. So, make good use of your idle money, and make it grow with Moneyfy.