Documents Required For Investment in Mutual Funds

Oct 30, 2011     Posted under: Investment






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Application Form: If you wish to start a systematic investment plan (SIP), you need to fill in 2 forms. One to open an account with the mutual fund (MF) and the other to specify your SIP details.

KYC and PAN Card: Effective January 1st 2011, know-your-client (KYC) norms have been made mandatory for everyone who wishes to invest in an MF. All you need to do is to submit your KYC acknowledgement along with your MF investment form. You no longer need to submit copies of your Permanent Account Number (PAN) card since KYC- compliance proves that you already have PAN.

Blank Cheque: Normally, a blank cancelled cheque is not mandatory when you start your SIP these days. But if you wish to start an SIP straightaway without investing the minimal amount, it’s best that you give a cancelled blank cheque to facilitate an electronic clearing system (ECS) mandate. This ensures that cheque details like the magnetic ink character reader (MICR) code, Indian Financial System Code (IFSC) apart from account number are appropriately captured.

For Minors: For investing in the name of minor – you need to fill in a third party declaration form. Only parents are allowed to invest on behalf of their children. Documents that establish the parent’s relationship with the child should be submitted; for example, a passport. If the child has no parents in case of an eventuality, then a court-appointed guardian can invest.

NitiN Kumar Jain

Nitin works in an IT MNC professionally but blogs and owns NKJ Live. He is also the co-owner of a professional start-up ARGHAM BYTES

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