Categories: Mutual Fund

How to complete KYC or E-KYC for Mutual Funds ONLINE?

One of the biggest hurdles for online savvy Mutual Fund investors is the completion of KYC process. Because as of now there is no such process which we can say ONLINE KYC or E-KYC. Recently Quantum Mutual Fund started processing KYC ONLINE also called as E-KYC. By using this facility, you can complete the KYC or E-KYC for Mutual Funds ONLINE itself.

So what is E-KYC?

E-KYC is nothing but Electronic KYC, which totally reduces the typical process of paperwork. It is purely an online process. E-KYC is a simplified KYC for investments based on PAN and Bank Account no. details.

The Quantum Mutual Fund is the first Mutual Fund Company, which started KYC or E-KYC for Mutual Funds ONLINE.

What are the documents required for Online KYC or E-KYC?

# For Resident Individuals

  • Self-attested PAN Card Copy.
  • Self-attested Proof of Address (Latest Bank Statement/Pass Book not more than 3 months old).

# For Non Resident Individuals

  • Self-attested PAN Card Copy.
  • Self-attested Proof of Address (Latest Bank Statement/Pass Book not more than 3 months old).
  • Self-attested Passport Copy.
  • Self-attested Overseas Address Proof and attested by Authorized Attesting Officials.

What is the process KYC or E-KYC for Mutual Funds ONLINE?

I explained the whole process through this below image.

What is the E – IPV?

E-IPV is electronic In-Person Verification as mandated for KYC compliance. As I mentioned in the above image, during the E-IPV process, they verify your presence, original documents, applicant’s verbal confirmation about the information he provided and the signature of the applicant.

Advantages of E-KYC or physical KYC

  • It is purely an online process. Hence, no physical paperwork. This is a boon to those who stay abroad on in remote areas, but ready to invest in mutual funds through DIRECT.
  • As the whole process is paperless, it involves low cost or you may say zero cost process.
  • Reduces the time for processing your KYC.
  • You no need to send any physical signed copies, under this process.
  • The only hurdle is your presence during the E – IPV process.

Once the whole process completed, then you will receive a letter/email confirming the same. You can also visit the websites of any KRA and verify the status online.

Few doubts still need to be clarified are as below-

  • Whether investing Quantum Mutual Fund is mandatory to go through this E-KYC process?
  • Whether one can complete E-KYC with Quantum and invest with other Mutual Fund companies?

Let us see how the details unfold. But to me Quantum Mutual Fund took a big leap in establishing E-KYC process, especially to Mutual Fund Direct Investors.

Recently Reliance Mutual Fund also started the eKYC process. and the procedure is as below.

E-KYC process of Reliance Mutual Fund

Once E-IPV is completed, your KYC details will be shared with KRA. Once KYC is registered, you will receive the confirmation via email / letter.

What lags in E-KYC process of Reliance Mutual Fund?

  • In my view, during the processing of KYC itself, you have to mention the fund for which you want to invest. So if you have to be an investor with Reliance AMC to get the E-KYC process.
  • It is not purely an online process. Because at the end, you have to send the physical KYC application form to Reliance AMC.
BasuNivesh

View Comments

  • I have opened demat account with zerodha online and during the process zerodha app did my verification digilocker adhar and thru webcam. Later after few days when I checked my kyc status on cvlkra site it shows kyc registered..ipv flag shows 'E'. What I heard is there is limit of 50k per fund house per year for online kyc..but when started investing thru zerodha coin app i did not experience any such limit.. so my question is whether coin app is following right protocol to limit the investment to 50k..is the investment beyond 50k there safe and legal.
    Also what does ipv flag 'E' means ..I heard it should be 'Y' for no limit on investment amount..pls advise

    • Dear Anil,
      Please check with Zerodha about the KYC issue. It is hard for me to guide as issue is unknown to me.

  • Hi I have a question in 2012 in have done my KYC... recently I have started to invest in MF. I have also updated my address and phone number in CAMS. Now I want to know whether mine is eKYC or physical KYC.. Please advise.

    Thanks

  • Hi
    I have registered in central kyc but while at karvy link its not showing my ckyc id.
    Why nd how to check it?

  • hi

    i have done Aadhar based KYC. Now when i want to convert it to full KYC through quantum website, it does not give me option to modify as it says i am already KYC compliant.

    • Dear Himanshu,
      If your KYC is completed, then why you want to do it again? Just go ahead for investment (if you are looking for investment in Mutual Funds).

  • Sir I already have KYC done but now I have to update my KYC address for that I should have CKYC no. So how do I get CKYC no?

  • Hi Mr Basu,
    I am an NRI and have opened recently a 4 in 1 account with Axis bank through which I am investing in shares. Now I am planning to invest in some direct plans for SIP's but all MF's asking CKYC no. But when I put my pan no in Karvy platform, it is showing KYC registered with NDML without a number. Please can you advice on what I should do to enroll in SIP Direct plans

    • Neethu-I think that is sufficient. By taking the printout of the Karvy platform acknowledgement, you can start investing directly in MF. The problem with CKYC is that it is not yet centralized as it was thought initially. Sad but the reality.

  • Hi Basu,
    I started investment in MF as an E-KYC complaint so there is a limit of 50K Per AMC per year.Recently i had applied for conversion of e-KYC to regular KYC in cams office and i did all the procedure as guided by officer there but application was finally rejected due to absence of IPV and cams advised me to do the document processing again. I have done some other investment through ICICI securities limited and they have processed my C-KYC. I have already got an email of my C-KYC processing and c-KYC number allotment.I need to know that do i still need to do the processing through cams as i am already C-KYC complaint?please reply.Thanks in advance.

    Regards

    • Sharda-Sadly the broker CKYC is not acceptable to MFs as of NOW. So you have to undergo once again the KYC.

  • I have already ekyc complaint. But now my address is charged.
    Can I change my address in ekyc online (with proof of bank passbook not more than 3 months) without any physical work?
    Thanks for your this service.

  • Hi Basu,

    My first question is similar to the one you've already answered but that was more than 8-9 months ago. I am asking again just in case there are any changes.

    Question 1: I did my eKYC through Karvy online. I want to invest more than 50k / year in mutual funds. Therefore, in order to convert my eKYC to regular KYC, is the process still the same as advised in the earlier post?

    Question 2: If I invest in mutual funds through Karvy website, would I be paying them any commissions now or in the future?

    Question 3: Is it possible to invest in mutual funds through my wife's demat account with ICICI?

    My wife and I are both NRIs but since my wife doesn't have any income I transfer some amounts to her NRE account from my own NRE account.

    Would really appreciate your valuable inputs to all above queries.
    Thanks.

    • Sameer-1) YES. 2) If you invest in REGULAR funds, then yes they earn a commission. 3) Demat account is not required and costly way of investing in MF.

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BasuNivesh

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