Everything You Need to Know About KYC in Mutual Fundsa
When for the first time you are thinking of investing in mutual funds, the first thing that you should know is that you must have your KYC validated by a bank. This is done only at the time of your first investment. But what is KYC and what are some of the related questions and information that you should have an idea about?
What Is Know your Customer (KYC)?
Laundering money is not a new type of scheme and government. And the financial corporations are stringent regarding this. They are always on the watch to make sure that they can catch the culprits of the illegal activities. When you go for KYC formalities, and then choose a particular investment scheme, then the company is sure that you are not a fraud. That the deposits and the investments are made by a real person and that no black money transaction occurs. Thus if you are a first-time investor, then this is a mandatory process that you must adhere to for your safety.
Why is KYC is a Necessary Process?
KYC is mandatory if you want to invest, and that has been mentioned before. Before you go for any particular brokerage or a company, this is a one time process that is compulsory. Before the initiation of the KYC process, you had to submit a copy of your PAN to prove your identity. But with the KYC for mutual fund process, now you could very easily choose a particular scheme whether online or physical, and the company could curb a duplicate copy of the KYC so that the investors are pretty quickly able to comply with it.
How to Know Whether You are KYC Compliant or not?
Investments are made to increase your wealth. But with that making sure that your identity is not a fake one is important. Thus, if you have invested more than once before, then there is no need for you to go again for KYC verification. But it is very easy to check whether you are KYC compliant or not online. Entering your PAN number on a verified website of the government, you would get to see the results immediately.
What are the Documents Required for KYC for Mutual Fund?
When you are thinking of investing in a scheme and want to go for KYC verification, there are some documents that you must carry with yourself. ID proof is one of the most vital documents that are required, and it could consist of a driving license, PAN card, passport, Aadhaar card. You also need address proof which could be anything from the latest electricity bill or phone bill having your current address. It could also be your driver license and rental agreement if you have any.
KYC could be done through both online and physical methods. From offline to Aadhaar KYC, you could go for the process which is most suitable for you. You could also go for biometric verification and remember that going for KYC before your first investment is mandatory as it is very important criteria that everyone must fulfill.
