Make What Are KYC Forms? days

The mutual fund investment market in India is spread all across the country since the past few years. With many new investment avenues and products, the choice remains yours. Moreover, with online mutual funds, beginners are able to deal with their favorite investments in a better way. When it comes to investments, some of the essential factors that you need to keep in mind include returns from investments, types of investments, performance and KYC.

‘Know Your Customer’ KYC is a term used to simply identify the investors and collect required information before they begin their investments. It is a must for all investors and applicants to understand the norms and rules for the same. ‘Know Your Customer’ is international concept where the data collected from the investors is utilized to avoid identity theft, fraud, money laundering and terrorist financing. With the help of this form, the financial institutions and banks are able to identify the investors.

Becoming KYC compliant

In the field of mutual fund investments, the importance of KYC cannot be overlooked. When you decide to invest in the mutual funds for the very first time, you need to submit a copy of it along with the investment application forms. An investment application form that is without the KYC acknowledgement is never approved. In order to become a KYC obedient in India, the investors need to submit following documents at CVL which is a secondary part of Central Depository Services Limited:

• PAN Card

• Documents for residential proof like passport, utility bill or a letter from secretory of the housing society

• Fully filled KYC application form

Once you submit all required documents with the investment application form, the financial institution or the bank carries out suitable KYC verification to approve the application. Once the application is approved, you are free to begin your investments by selecting your favorable avenues.

Mutual Funds in India have always proved to be beneficial for all the investors. Considering the investing benefits and wide range of products, even the foreigners prefer to multiply their money with Indian investments. Usually the KYC is applicable for following types of transactions:

• Systematic Investment Plan registrations

• STP registrations along with any STP related products

• Switch transactions or new purchases

• DTP registrations and any products related to DTP

For any existing DTP, STP or SIP registrations and related products, these norms are valid on the acceptance date of request. Existing and new mutual fund investors need to submit their KYC application forms before investing. To help the investors submit the documents, the registration is centralized by KYC registration agencies KRAs that are registered with SEBI. Financial institutions and investment agents offer details information about these norms for the investors. Get online to avail the updates on the ‘Know Your Customer’ norms and understand the investment basics. Contact your financial advisor or the investment agent to better understand all these norms and available investment avenues. Multiply your money with the investment product that matches your personal needs and financial goals.

Source by Sagar U Thakur

Related Articles


Your email address will not be published. Required fields are marked *