KYC or Know Your Customer is a compulsory requirement for those wishing to invest in Mutual Funds. It is mandatorily needed by the Market Regulator SEBI (Securities and Exchange Board of India). This identification process needs to be undertaken only once. KYC was introduced to avoid fraudulent activities. eKYC for Mutual Fund was launched for the ease of investors.
Get your KYC Completed
You can get your KYC completed with either of the below options:
- The Asset Management Company (AMC) or the Fund House.
- Any KYC Registration Agencies or KRA, in short. Such as CAMSonline, Karvy, CSDL (Central Depository Services Limited) Ventures, NSDL (National Securities Depository Limited), NSE-DotEx (National Stock Exchange), BSE-Sensex (Bombay Stock Exchange).
You can opt for offline by visiting their offices in person. Else you have the alternative to complete the process online by eKYC for your Mutual Fund.
Offline KYC Process
- Initiate the process by visiting the branch of a Fund House or any of the above-mentioned KRA.
- Fill in the KYC Form with them. You would need to take copies of your PAN Card and Address Proof. Also, take the originals with you.
Get your eKYC done for investing in Mutual Fund
Choose from below options to get your KYC done Online:
- Visit myCAMS or KRA’s government portal. Create your own account. You will need to fill in your personal details, your email id, and your mobile number. Check the Registration Process here.
- Upload Self-Attested Copies of your PAN Card and Address Proof.
That’s all. Your eKYC process for investing in Mutual Fund is done!
You need 1 Passport sized Photograph, an ID Proof, and an Address Proof to complete your KYC procedure.
Below documents are accepted for ID Proof:
- PAN Card,
- Adhaar Card,
- Voter ID Card,
- Driving License, or
- NREGA Card.
You need either of the below as Address Proof:
- Recent landline or mobile Bill,
- Electricity or other Utility Bill,
- Demat Account Statement, of the past 6 months,
- Bank Statement of the past 6 months,
- Ration Card,
- Voter ID,
- Rent Agreement,
- Driving License, or
- Adhaar card.
Get your eKYC done with WealthBucket
WealthBucket is integrated with the CAMS eKYC platform. So you may complete the process within a few minutes and from the comforts of your home or office. It is to make investment easier for you. Whether you want to invest a small or large sum of money.
As the eKYC process with us gets completed within a few minutes, you can start with your Mutual Funds investments immediately afterward. Later, you may get your in-person biometric verification completed at leisure. This biometric verification is needed as per SEBI Rules. If the amount of investment exceeds Rs. 50,000 per mutual fund each year.
Benefits of Getting eKYC done for investing in Mutual Fund
Among the many advantages of getting eKYC done, we are stating below a few out of them. These benefits have attracted most Mutual Funds, Investors & Distributors, as well.
Personal Details are Secure: All information is stored and transmitted on the website with a special configuration. Whether it is your Account Information, Demographic Data, Biometric Data, etc. The KRA, Fund House, or AMC’s Portal is maintained with the highest level of Security. It reduces illegal activities of money laundering, loan scams, identity theft, and fraud.
You are the Boss: The option to invest will always be yours. The eKYC mechanism is completely dependent on your decision. Not only that, you have the choice of providing access to your details to whomsoever you want. In some cases, if you change your mind. You may not want to invest in Mutual Funds. Whereas, if you opt for offline KYC. It is possible that your self-attested documents end up with unauthorized parties. This risk gets reduced to a large extent by taking the online KYC mode.
Instant Process: No Human element is involved that means no Red Tape is involved. The efficiency in the digital process ensures no delays. Comparatively, the offline process would take at least a few days.
Transparency: Incidents of the KYC documents in illegal and illegitimate persons occurred commonly. Opting for Online KYC, you can avoid such an event. The websites store the data in encrypted servers. It makes the possibility of a breach highly unlikely. Besides, the trespasser or the source of the breach can be traced in online transactions. They can be brought to legal authority with proof.
No Hidden Costs: Some Mutual Funds agents may charge extra amount as KYC Registration fees. And investors need to pay to avoid the hassle of taking time off from work and visiting the Government Agency in person. With eKYC, you do not need to pay in addition to the investment amount.
Compliance: Your data gets validated using the latest technologies. This increases the overall security of the system. It also ensures that the digitally transferred document is legally valid.
Role of KRAs
In the times of offline KYCs, the KRAs needed to verify, store and maintain all the data. They acted as a database for all those Mutual Funds that are registered with SEBI.
And with eKYC being introduced, they still verify, maintain and operate the KYC database.
The only difference now is that the paperwork has been reduced. The database on PAN Cards & Adhaar Card has all gone digital. So the days of multiplicity or doubling have been replaced.
Role of Intermediaries in eKYC process for investing in Mutual Fund
The role of intermediaries in the offline or online KYC process has been defined in the SEBI KRA Regulations 2011.
The intermediary needs to check quite diligently while processing the KYC of the investor. Afterward, all the information needs to be uploaded on the KRA site. In the case of Offline, the documents must be sent to the KRA within a predetermined time limit.
Any changes in the details of the client would need to be uploaded or sent physically, as the case may be. Especially if the information becomes known to the intermediary at a later date.
The security of the data cannot be breached by the intermediary. So it needs to maintain a very high-security code for the same. It cannot use the information for any purpose other than what has been specified by the client. The intermediary cannot even share it with its legal associates.
In the event, you want to change your Mutual Fund Agent or intermediary. The new Mutual Fund Distributor can choose to download and verify your details from the KRA website. Otherwise, the new intermediary may ask you to submit fresh documents.
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