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Mutual Funds – it can’t get bigger than this!
  • Documents Required To Buy a Mutual Fund

  • Buying a mutual fund is very easy – you could even do it online within a few minutes. However, like any other financial transaction, it is not devoid of documentation. Providing the right documents is important because that helps prevent fraudulent deals, averts tax irregularities and builds people’s trust in you. In this article we will discuss the documents you would require if you have decided to buy a mutual fund.

    1. 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.
    2. 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 handy:
      1. KYC individual form
      2. Passport-sized photograph
    3. Proof of identity: Any of the following documents are acceptable as proof of identity –
      1. PAN with photograph
      2. Aadhaar
      3. Passport
      4. Voter’s ID card
      5. Driving licence
      6. 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.
    4. Proof of address: Any of the following documents can be submitted as proof of identity –
      1. Aadhaar
      2. Driving licence
      3. Passport
      4. Voter’s ID card
      5. Ration card
      6. Registered lease/sale agreement of residence
      7. Flat maintenance bill
      8. Insurance copy
      9. Utility bills such as landline telephone bill, electricity bill or gas bill, less than 3 months old
      10. Bank account statement/passbook, less than 3 months old
      11. Self-declaration by High Court and Supreme Court judges, giving the new address in respect of their own account
      12. 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
      13. 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
      14. 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
      15. Proof of address in the name of the spouse is also acceptable.
    5. 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.
    6. 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:

      1. Certificate of registration/incorporation
      2. Memorandum and Article of Association
      3. Address proofs
      4. Resolution of the Board of Directors to open an account for investment in Mutual Funds Schemes
      5. List and signature/s of authorised person/s
      6. Deed of declaration of HUF
      7. Bank Statement
      8. Trust deeds (for Trusts)
      9. Power of Attorney (for Trust)
      10. Certificate of registration with SEBI (for FIIs)
      11. 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. 

    GST rate of 18% applicable for all financial services effective July 1, 2017.

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