Mutual funds: Why is it crucial to update KYC; How to do step-by-step
KYC or Know Your Client has emerged as a significant element in all types of investments from a savings bank account to mutual funds. Updating KYC details is needed to for a lot of urgent requirements -- compliance with regulations, preventing money laundering and smooth access to one's investments.
Kolkata: Mutual funds have emerged as the favourite instrument for a vast majority of middle class and lower middle class Indians. Rules require that those who have validated KYC can invest without any headache. If the KYC of any investor is rejected or kept on hold it has to updated and validated for conducting investment. It has become so important that unless KYC is validated one cannot begin investing at all. One should not treat it as a mere formality or a headache -- it is a necessity to ensure security of your investment, especially in this digital age when fraudsters are lurking at every corner, trying to defraud you of your earnings.
How to check KYC status and update it
A few simple steps can lead you to check your KYC status. One can do so via the website of any mutual fund company. One needs to type in one's PAN. If the KYC is marked validated, there is no problem. If it shows on hold or rejected, one has to get it validated and do the steps that are required for it.
ONE: Go to the website of the Mutual Fund in which you invest. (It can also be done through RTA -- registrar and transfer agent).
TWO: Type the PAN in KYC status link
THREE: Do the captcha compliance
FOUR: KYC status will appear on the screen: Validated, Registered, On Hold or Rejected
If KYC is validated, there is not need for any step
If KYC registered, one can transact in their existing investments. (One has to update KYC if one wants to invest in a new fund)
If KYC is on hold/rejected, the verification has to be completed before investment. It could be due to many things from mobile number/email not being verified to PAN not being linked to Aadhaar.
eKYC through AMFI
Experts point out that one can get eKYC updated through AMFI (Association of Mutual Funds in India). One can enter the AMFI website and access the eKYC modification pages of as many as 43 MF houses. CHanges can be done from here.
Disclaimer: This article is only meant to provide information. TV9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds, precious metals, commodity, REITs, INVITs, any form of alternative investment instruments and crypto assets.