Finance

What are documents required to invest in mutual funds?

Are you planning to invest in mutual funds? If yes, then you should know about the detailed procedure of investing mutual funds. The first step in mutual fund investment deals with KYC compliance wherein you have to submit necessary documents. After that, you can compare mutual funds and plan your investments accordingly. Those of you, who are in doubt regarding documents, check out this article. We have listed all the documents required to invest in mutual funds.

Securities and Exchange Board of India (SEBI) has outlined a detailed procedure for customer identification. This is known as Know Your Customer (KYC) procedure. There are dedicated KYC Registration Companies (KRA) that carry out verification process. With respect to KYC compliance, you should submit following documents before investing in mutual funds.

In a broad perspective, we have four documents:

  • Identity Proof
  • Address Proof
  • Passport Copy
  • Passport-sized Photograph

Now we can further divide these into subheadings according to various scenarios.

Individuals

Individuals have a lot of options when it comes to submitting identity proof and address proof. If you are an individual investor, you will not face any issues while furnishing these documents.

  1. Identity Proof

You can submit PAN card as an identity proof. But the PAN card must contain your photograph. In case there is no photograph on the PAN card, you can submit one of the following documents:

  • Driving License
  • Passport
  • Voter ID
  • Passbook bearing a photograph
  • Aadhar Card
  1. Address Proof

You will not face any problems while submitting address proof because there are too many options available for you:

  • Mobile/Landline bill not older than three months
  • Bank account statement,not older three months
  • Voter ID
  • Electricity bill not older than three months
  • Ration Card
  • Rent Agreement
  • Aadhar Card
  • Demat account statement not older than three months

Hindu Undivided Family (HUF)

For HUF, there are certain documents that are invalid for submission. The Karta of the HUF will hold the units purchased in a mutual fund. The following documents can be submitted by HUF:

  1. Identity Proof
  • Copy of PAN card issued in the name of HUF
  1. Address Proof

The documents listed in the individual segment are valid for submission in this case.

Companies or Corporate Bodies

The list of documents varies completely when it comes to companies and corporate bodies. However, PAN card is compulsory for these entities as well.

  • Certification of Incorporation
  • Memorandum and Articles of Association
  • A Resolution by the Board of Directors that authorizes mutual fund investments
  • Power of Attorney that verifies an authorized signatories list comprising of persons eligible for transacting mutual fund investments

Partnership Firms

The documents required are somewhat similar to the documents listed in the previous segment.

  • Certificate of Registration
  • Power of Attorney that allows authorized persons to per

form transactionsNon-profit Organizations/Clubs/Mutual Fund Schemes

The documents remain as in the previous one. The only exception is the addition of an offer document of the mutual fund scheme. This has to be submitted by the mutual fund scheme.

  • Certificate of Registration
  • Documents validating power of attorney given to persons eligible for conducting transactions

If you opt for doing online transactions, you can link your bank account by furnishing information like account number, account holder name, IFSC code, and address. Otherwise, you can submit a cheque to the mutual fund office in your city. After the first transaction, the account will be linked automatically. You can terminate the transactions any time as per your discretion.

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Andrew Williams

Andrew Williams