FAQs

KYC

What is KYC?

KYC is an acronym for “Know your Client”, a term commonly used for Client Identification Process. SEBI has prescribed certain requirements relating to KYC norms for Financial Institutions and Financial Intermediaries including Mutual Funds to ‘know’ their clients. This would be in the form of verification of identity and address, financial status, occupation and such other personal information. Applicant must be KYC compliant while investing with any SEBI registered Mutual Fund.

What are the KYC requirements for a Mutual Fund Investor?

Individual investors will have to produce Proof of Identity (Photo PAN card copy or PAN card copy) and Proof of Address (any valid documents listed in section B of the KYC Application Form for Individuals).
Non–Individual Investors will have to produce certain documents pertaining to its constitution/registration to fulfill the KYC process. A list of Mandatory Certified documents to be submitted can be found in section C of the KYC application form for Non-Individual Investors.

What should the investor do?

	Download and Fill-up the KYC form

	Attach the following documents:

For Individuals

Pan Card

The photocopy of the PAN with original. The Original PAN is for verification only and will be returned to you immediately.

	Photo PAN Card

	In case of Non Photo PAN Card in addition to copy of PAN Card any one of the following
	Driving License /Passport copy / Voter ID /Bank Photo Pass Book.

Proof of Address Document (one for each distinct address)

These should be either original + photocopies or attested / notarized photocopies. The documents may include one of the following: Latest Telephone/Electricity Bill, Passport, Driving License, Latest Bank Passbook or A/c Statement (not more than 3 months prior to the date of application), Voter Identity Card, Ration Card, Latest Demat Account Statement, Registered Lease / Sale Agreement of residence.

For NRI

If you are an NRI, you must mention your overseas address.

	Overseas Bank Account Statement (not more than 3 months prior to the date of Application)

	Any other document duly certified by local authority in the country of residence

	In case the documents are in any language other than English the same must be translated to English and certified by Government Authority in country of residence or by the Indian Embassy. In case investors provide more than one address, proofs of both the addresses need to be provided.

For Non-Individuals

Hindu Undivided Family (HUF)

Deed of Declaration, Latest Bank Passbook / Latest Bank account statement (not more than 3 months prior to the date of application), Copy of PAN Card of HUF.

Company / Body Corporate

Certificate of Incorporation, Memorandum & Articles of Association, Resolution of the Board of Directors, Authorized Signatory List with specimen signatures, Copy of PAN Card of Company / Body Corporate

Partnership firms

Certificate of registration, Partnership deed Documents evidencing authority to invest, Authorized Signatory List with specimen signatures, Copy of PAN Card of Partnership Firm

Trusts, foundations, NGOs, Charitable Bodies

Certificate of registration, Trust deed, Authorized Signatory List with specimen signatures, Copy of PAN Card

Unincorporated association or a body of individuals

Proof of Existence / Constitution Document, Documents evidencing authority to invest, Authorized Signatory list with specimen signature, Copy of PAN Card

Foreign Institutional Investors (FIIs):

Letter and Certificate of Registration issued by SEBI, Authorized Signatory list with specimen signature

Scheduled Commercial Banks and Registered Financial Institutions not incorporated under the Companies Act, 1956, Regulatory Bodies / Army / Government Bodies / Any other bodies created / incorporated / registered under state or central legislation being eligible to invest in Mutual Funds

Copy of Constitution / registration documents evidencing authority to invest

Where and how does one get to be KYC Compliant? Does the investor have to repeat the KYC process with every Mutual Fund?

The Association of Mutual Funds of India (AMFI) has facilitated a centralized platform through CDSL Ventures Limited (“CVL”), a wholly owned subsidiary of Central Depository Services (India) Limited, to carry out the KYC procedure on behalf of all Mutual Funds. CVL through its Points of Service (POS) will accept KYC Application Forms, verify documents and provide the KYC Acknowledgement (across the counter on a best effort basis). The list of PoS will be displayed on the websites of Mutual Funds, CVL and AMFI (www.amfiindia.com and www.cvlindia.com respectively). Once the KYC is duly completed in all regards, the investor needs to produce a copy of the acknowledgement when investing for the first time with Mutual Fund. There is no need to repeat the KYC process individually for each mutual fund.

To whom is a KYC applicable? Is there any exemption?

Currently, all investors (Individuals or Non Individuals) who wish to make an investment of Rs. 50,000 or above in a mutual fund scheme will be required to complete the KYC process. This would also apply to new Systematic Investment Plan (SIP) registrations on or after February 1, 2008, if each SIP installment is of value greater than or equal to Rs.50,000. Please find the list of personnel who are required to be KYC compliant:

Joint Holders

Joint holders (including first, second and third if any, are required) to be individually KYC compliant before they can invest with any Mutual Fund, e.g. in case of three joint holders, all holders need to be KYC compliant and copies of each holder’s KYC Acknowledgement must be attached to the investment application form with any Mutual Fund.

Minors

In case of investments in respect of a Minor, the Guardian should be KYC compliant and attach their KYC Acknowledgement while investing in the name of the minor. The Minor, upon attaining majority, should immediately apply for KYC compliance in his/her own capacity and intimate the concerned Mutual Fund(s), in order to be able to transact further in his/her own capacity.

Power of Attorney (PoA) Holder

Investors desirous of investing through a PoA must note that the KYC compliance requirements are mandatory for both the PoA issuer (i.e. Investor) and the Attorney (i.e. the holder of PoA), both of whom should be KYC compliant in their independent capacity and attach their respective KYC Acknowledgements while investing.

For transmission (In case of death of the unit holder):

If the deceased is the sole applicant, the claimant should submit his/her KYC Acknowledgement in the request along with the other relevant documents to effect the transmission in his/her favour. For transfer of units-transferee/s should submit his/her/their KYC Acknowledgement in the request along with the other relevant documents to affect the transfer in his/her/their favour.

Tax Planning

What is the importance of Tax Planning?

Income tax saving is a part of investment and overall financial planning that individuals should do in order to maximize their wealth and secure their financial future. Section 80C of the Income Tax Act, defines various tax saving instruments like PPF, NSC, ELSS, Life Insurance, etc. where investments made of upto Rs. 1 Lac are eligible for tax deductions.

Tax planning contributes towards building a long term wealth to fulfill financial goals like buying a house, child’s education, exotic vacation etc.

How can I save Income Tax?

You can actually save Income Tax by availing the deductions under Section 80C and 80D as below

Section 80C

Section 80C of the Income Tax Act is the boon that outlines the rules of deductions from taxable income, no matter which tax bracket you fall under. As per the section, invest in the approved categories of investment and deduct that amount from the gross income. You now have a new ‘income’ amount to calculate your tax liability on. However, a flat ceiling of Rs. 1,00,000 is set for deduction for any tax bracket.

A tax payer can invest up to Rs 1 lakh in EPF, PPF, life insurance, infrastructure bonds, NSC, repayment of home loans, tax saving mutual funds, pension plan, etc without any individual sub-limits except in the case of Rs 10,000 in pension funds.

Section 80D

Additional deduction allowed for individuals for taking health insurance for parents as under:Where parents are aged below 65 years Rs. 15,000/-Where parents are aged 65 years & above Rs. 20,000/-

MF Insta Invest

What is MF Insta invest?

MF Insta invest is online transaction service for transacting in slected AMC and mutual fund schemes. You can invest, redeem or switch between funds, Systematic Transfer Plan (STP), or a Systematic Withdrawal Plan (SWP) of an AMC.

What are the services offered through MF Insta invest?

MF Insta invest offers you the following services

Transaction services

	Invest ,switch from one Mutual Fund scheme to another of an AMC

	Redeem units in a scheme

	Set up Systematic Plans ( STP, SWP)

NAV

	See up to date daily NAVs for all Mutual Fund funds

	Track historical NAVs for all Mutual Fund funds on a daily basis

Are there any charges for MF Insta invest?

No, there are no charges for registering for MF Insta Invest. For transacting the charges are available in the logged in section.

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