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If you want to invest in any type of mutual fund scheme, then you must be KYC compliant.
The KYC process verifies the identity of any investor with the help of relevant and original documents such as a PAN card and address proof like Voter ID, Driving License, and Aadhar Card, etc. You can complete the KYC process online with OTP-based Aadhar authentication if you are a new investor.
The existing e-KYC solution are available on several Asset Management Company (AMCs) website or Registrar and Transfer agents (RTA) portals (like CAMSonline and Karvy KRA, etc.). It enables new investors to complete the KYC process digitally with OTP based Aadhaar authentication. This allows investors to make investments in desired mutual funds with minimal efforts and without any hassles.
However, if any investor’s KYC details change over the time period, they must update the same through KYC modification process. In simple words, existing KYC compliant investors should perform KYC modification if there is any change of details like income status, address, banking details etc.
Recently, while speaking at the Independent Consultants & Advisor Association (ICAA) Mr NS Venkatesh CEO at AMFI said, “The Mutual Fund industry will facilitate KYC modification completely online with advent of 5G technology. While the industry currently facilitates online KYC at the time of onboarding, modification of KYC still happens through physical route. As a result, the mutual fund industry and RTAs have been working to make KYC modification process completely online.”
Furthermore, showcasing the possibilities in the mutual fund sector, Mr Venkatesh said, “India has over 40 crore PAN card holders and over 8 crore people have filed income tax returns. Currently, the MF industry has 4 crore investors which indicates that the industry has a long way to go. AMFI has consulted PwC to understand how they can increase the scope of AMFI to match with the global best practices.”