Proper documents along with their photocopy needs to be verified and submitted in order to invest in mutual funds.
- Application form: You may need to fill in more than 1 application form to get a mutual fund. One would be to open a mutual fund account, another form would be required if you opt for a SIP plan within the fund, and if you are going for an electronic transfer from your bank account, an ECS form will also need to be filled. Some Asset Management Companies may ask for other forms such as a Risk Profile form.
- KYC Compliance: Your PAN has to be verified by under the Know
Your Customer (KYC) norms of the Government of India to be able to invest in
mutual funds. You can check your KYC compliance or register yourself for KYC
through the website of CDSL Ventures Limited (CVL). If you are already
KYC-compliant, you need to submit the KYC acknowledgement letter or copy of the
KYC-compliance page. If you are not KYC-compliant, keep the following documents
- KYC individual form
- Passport-sized photograph
- Proof of identity: Any of the following documents are
acceptable as proof of identity –
- PAN with photograph
- Voter’s ID card
- Driving licence
- Identity card/document with applicant’s photo, issued by any of the following: Central/State Government and its Departments, Statutory/Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, Public Financial Institutions, Colleges affiliated to Universities, Professional Bodies such as ICAI, ICWAI, ICSI, Bar Council etc. to their Members; and Credit cards/Debit cards issued by Banks.
- Proof of address: Any of the following documents can be submitted
as proof of identity –
- Driving licence
- Voter’s ID card
- Ration card
- Registered lease/sale agreement of residence
- Flat maintenance bill
- Insurance copy
- Utility bills such as landline telephone bill, electricity bill or gas bill, less than 3 months old
- Bank account statement/passbook, less than 3 months old
- Self-declaration by High Court and Supreme Court judges, giving the new address in respect of their own account
- Proof of address issued by Bank Managers of Scheduled Commercial Banks/Multinational Foreign Banks/Gazetted Officer/Notary Public/Elected Representatives to the Legislative Assembly or Parliament/a document issued by any Government or Statutory Authority
- Identity card/document with address, issued by any of the following: Central/State Government and its Departments. Statutory/Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, Public Financial Institutions, Colleges affiliated to Universities and Professional Bodies such ICAI, ICWAI, ICSI, Bar Council etc. to their Members
- For Foreign Institutional Investors (FII)/sub account, Power of Attorney given by FII/sub-account to the Custodians, duly notarised and/or apostiled or consularised
- Proof of address in the name of the spouse is also acceptable.
- Cheque for SIP or lump sum amount, as per your choice. If the cheque doesn’t have your name on it, then bank statement for the ongoing month also has to be submitted. Blank cheques are not mandatory any more. Cheques are also not required if you are starting the mutual fund account online.
- Third party declaration for minors: If the investor is a minor, parents are allowed to invest on behalf of them. For this, you need to fill out a third party declaration form.
For non-individuals – that is, companies, trusts, partnership firms, Hindu United Families (HUF), etc. – the following documents are required, apart from or instead of the ones listed above:
- Certificate of registration/incorporation
- Memorandum and Article of Association
- Address proofs
- Resolution of the Board of Directors to open an account for investment in Mutual Funds Schemes
- List and signature/s of authorised person/s
- Deed of declaration of HUF
- Bank Statement
- Trust deeds (for Trusts)
- Power of Attorney (for Trust)
- Certificate of registration with SEBI (for FIIs)
- Self-certification on letterhead (for banks, institutional investors, regulatory bodies, army organisations and government bodies
Once you have the required documents ready, you are ready to open a mutual fund account and choose a fund that suits your risk appetite and monetary goals.