What is KYC?

KYC (Know your customer) is mandatory for an investor to complete before they start their investment journey. These norms were made mandatory by SEBI (Securities and exchange board of India) in 2005 for all AMCs to adhere to as part of the Prevention of money laundering act, 2002.

Why is it needed?

The details collected in KYC help ensure that the investments made are not spurious. They also help prevent future cases of money laundering and fraud. It is a process to make sure that everyone who is investing provides their real names and details to prevent any unforeseen circumstances in the future. Permanent Account Number (PAN) is being the main document to invest. Legally, its clear that an Individual would be assigned only one PAN for self.

Is it a one-time procedure?

The mutual fund KYC is a one-time procedure to be followed across the mutual fund industry. Once completed, it need not be done again when investing with another mutual fund.

How is it done?

Here are the following methods to complete KYC -

1. Aadhaar based KYC - Aadhaar-based KYC allows a customer to perform KYC using his Aadhaar details online. However, you can invest only up to Rs. 50,000 every financial year per fund.

2. In-person verification - IPV is the physical verification of the information provided in the KYC form done by the AMC or Distributor’s employee to establish its authenticity. However, to speed up the process, most companies now use video KYC

3. Video KYC - Video KYC requires an investor to upload identity proofs such as a photograph, address proof, a canceled cheque, PAN card, and signatures on the AMC’s platform.

How is it done on Finhancers?

At Finhancers, we have the best and the fastest version of KYC, which is the video KYC.

The KYC process on Finhancers -

In our video KYC, following documents are to be submitted before you start your investment journey -

1. Identity proof - PAN card

2. Address proof - Aadhar card

3. A canceled cheque

4. Signature

To start investing, click here.