1. Know Your Client (KYC). Any capitalist must conduct KYC before they deal in Stocks, Mutual Funds or Portfolio Management Services. This can be done once, through SEBI registered treatment (Mutual Fund advisors and brokers etc). Except for small SIP investors (investing less than Rs.), fund transactions require the furnishing of a PAN. In a single FY, mutual funds can be worth Rs. 50,000
To complete KYC formalities, any document in each class should be submitted.
Identification proof: Passport copy, driving licence, Passport copy and Voter ID.
Address proof: Current electricity bill, passport copy. Demat statement. Voter ID. Driving license. Rent agreement.
Documents such as statements and bills should be received no more than three months prior to the date of application.
A prospective capitalist should submit a photograph along with the above-mentioned Identity proof and address proof documents. These documents should be submitted in printed type. This is not possible online.
2. Mutual Fund Investing:
a. Offline: After completing KYC, a potential capitalist may use the services of a money intermediary known as-a mutual fund distributor. Simply walk into the office or workplace of the Registrar & Transfer Agents to get the contact information. Banks, non-banking finance firms and individual financial advisors can be mutual fund distributors. These documents are required:
I. Mutual fund form filled in
ii. KYC Number
iii. Payment instrument – Demand Draft or Cheque. Cash deposit challan in case AMC accepts money
The mutual fund Company will allow the Folio range, which represents the capitalist’s investment account command, based on the submitted application. The “Account Statement” would contain the details of the investment. It might include the date of investment and the number of units that were damaged. Also, it could indicate the current value of the portfolio.
b. Online KYC: KYC forms should be completed prior to mutual funds financing. Some mutual funds do not allow new investors to invest online. To take a position online in mutual funds, the consumer must go to the AMC’s website and register online. On-line login and password will be created. This allows you to make investments or perform other transactions.
3. in person Verification (IPV):
In-Person Verification (IPV) is a demand that was mandated by the SEBI from January 2012.
The intermediary will collect documents such as Identity proof and address proof to conduct an IPV. When verifying the first documents, the mediator should ensure that the copy of documents obtained is authentic.