Know the process for KYC for mutual fund
We all want to put our money to good use. Nothing can be better than investing your money in a mutual fund. They give great returns and are very flexible.
The biggest rumor about mutual fund investment is it is for rich people only. But there are different types of mutual funds. One of them is investing through the Systematic Investment Plan (SIP). In this plan, the user can invest their money periodically instead of payment lump-sum. The least amount of investment is Rs. 500. The best feature of SIP is they save a portion of our tax. A tax saving sip is usually a long term-plan of at least three years. Under section 80C of the Income Tax Act, you can save a significant portion of your payable tax by investing your money in SIPs.
About KYC in a mutual fund
No organization will lend you money without any background check. Be it a bank or a mutual fund company, you have to provide your detailed data to register yourself for any investment.
KYC or Know Your Customer is a customer identification method. All financial organizations do it. During this process, you are asked to submit your ID proof, address proof, and some other documents.
Importance of KYC in mutual funds
KYC is very crucial for money investment. It reduces the risk of any fraud case or unexpected events.
- With KYC, one gets assure that the investments are not suspicious.
- It removes any possibility of money fraud or money laundering.
- KYC makes sure that every customer is providing their real name, address, and other details.
- If the account holder faces any problems in the future, the KYC offers all the necessary information.
- It establishes the authenticity of the customer.
- With KYC, the organization can perform a detailed background check and terminate the scheme if any defaults or suspicious activities are found.
So, KYC is crucial for mutual funds. It builds up the trust between the investors and the company. All mutual fund companies keep the KYC of every customer very private and safe.
What are the documents required to complete KYC?
There are different valid documents you will need to complete your KYC. They are;
- A passport-sized photograph
- Pan card
- Address proof
- Identity proof (Aadhaar card or Voter Card or Passport or Driving license)
How to submit your mutual fund KYC successfully?
There are two ways of submitting KYC.
- Online KYC
- Offline KYC
To fill up your KYC online, you have to visit your selected mutual fund company's official website and fill the KYC form. Before submitting, you need to upload all your valid documents.
For offline KYC, you can visit the mutual fund company and fill the KYC form. Here, you have to manually submit it with all the hardcopy of the required documents.
Thus, you can submit KYC for mutual fund successfully and invest in different mutual funds.
