Mutual funds provide the opportunity for any individual or an investor to gain wealth in a systematic manner and within the set time frame. Investors can select between low risk and the high-risk funds that offer wealth accordingly. For instance, an investor looking for a long-term investment can opt for low-risk funds and vice versa.
If you intend to invest in mutual funds, you no longer have to visit the branches and fill up a bunch of papers to open an account and start trading. The evolution of the Internet has made it possible for the management houses to offer online methodology through which you can register, select the preferred for the scheme, and begin the investment procedure.
The first phase
The first phase requires you to begin with Know Your Customer (KYC) requirement. It is necessary for an individual or an investor to fulfill the KYC norms to start investing in mutual funds. Fulfilling the need includes submission of address proof, a photograph, and identity proof. In a few situations, it is also necessary for the investor to confirm the physical presence through in-person verification. The in-person verification requires the individual to be present in a specific slot and make himself/herself available for verification through the video call.
Apart from this, several fund houses such as Quantum, Birla Sun Life, etc. have begun to provide the online eKYC system to ease the process of registering an investor. Simply clicking the link available on the website and following the steps will be helpful for an individual to register and begin investing in mutual funds.
Apart from the procedures mentioned above, one can also visit CAMS KRA website, which is a KYC registration agency. Registration is a one-time procedure and centralized. It determines that the user does not have to register separately each time he/she chooses a different fund house to begin investing in mutual funds. It is essential to note that CAMS is not a registrar and a transfer agent. Karvy takes care of a few mutual funds. Therefore, it is necessary to check between the both and opt for an appropriate service depending on the choice. Although the steps of registering for eKYC differ slightly, the basic structure remains the same. It includes providing basic information such as name, date of birth, address, and mobile number. Users also require uploading documents such as the scanned copy of PAN card and address proof.
For investors who do not possess Aadhaar, the service provider will complete the registration by carrying out in-person verification. The individual should keep address proof and PAN card handy and display the same during the video call for confirmation.
Aadhaar based eKYC
Possession of Aadhaar will simplify the registration process. Entering the Aadhaar number and authenticating it using the one-time password will fill the basic details of the individual from the UIDAI database. Completing the verification in such a manner that does not require the individual to go through the in-person verification procedure.
If the user does not submit proof of PAN card, then it is possible for him or her to invest only INR 50,000/- per annum. In case the user updates the profile with PAN card, he/she can increase the amount of investment at any time.
The user can visit the required website of the fund house and create an account. It is necessary to keep the cell phone and checkbook handy to verify the account through OTP. Upon confirmation, the user can log in, select the mutual fund scheme, and submit the request. You can also check Online SBI for more info on the same