How to check your mutual fund KYC status? Check this complete step-by-step guide
Upstox
3 min read • Updated: April 23, 2024, 4:54 PM
Summary
Know your customer (KYC) verification is mandatory for mutual fund investors. It helps to mitigate risks associated with money laundering and fraud related to money. If your KYC is on hold, you need to consult your financial advisor, mutual fund distributor or investment broker and understand the further plan of action.
Mutual funds are a well-known investment option throughout India that offers a chance to amplify your wealth over a long period. However, before investing in mutual funds, it is important to complete your KYC verification. By verifying details such as identity and address, KYC helps ensure legitimacy of the investor's information.
Why is KYC important for investing in mutual funds?
KYC plays an important role in protecting the interests of both investors and mutual fund companies. Here's why KYC is important for investing in mutual funds:
- Protects Investors: KYC verification helps to prevent fraudulent activities such as identity theft. It also ensures that the person investing in the mutual fund is the appropriate owner of the funds.
- Reduces risks: KYC makes it easy for the legal team to identify criminals and frauds involved in the money laundering process. Therefore, it reduces risks and provides you with a safe and secure mode of investment.
- Ensures regulatory compliance: KYC is a mandatory process set by the Securities and Exchange Board of India (SEBI) for every mutual fund investor. Mutual fund companies are also obligated to comply with KYC regulations to ensure a transparent investment environment for all the investors.
How to check your KYC status?
You can check your KYC status for mutual fund investments using the below steps:
- Mutual fund company website: Some mutual fund companies allow you to check the status of your KYC directly on their website. You may have to login to your investment account and provide your PAN details.
- Online KYC verification platforms: A lot of KYC registration agencies (KRAs) provide online platforms where you can check your KYC status. All you have to do is enter your PAN details and other relevant information to get to know your KYC status.
- Contacting the KRA: You can also contact the KRA that verified your KYC to enquire about your KYC status.
What do you do if your KYC status is "On Hold"?
If your KYC status is "on hold", it means that there may be some discrepancy with the documents submitted. Here's what you need to do:
- Identify the issue: The KRA or mutual fund company will assist you with the reason for which your KYC is on hold. This may be due to a mismatch in your address proof, PAN details or any other documents.
- Resubmit the documents: Once the issue is identified, you will have to resubmit the documents as per the requirements. After reviewing your documents, your KYC will get approved, provided it meets the guidelines.
To conclude, KYC verification is a simple process that ensures a safe and secure investment experience in mutual funds. By completing your KYC and keeping your KYC details updated, you can invest in mutual funds with peace of mind. Remember, a KYC-compliant investor is a protected investor.