Widely read:
Mutual-fund investors will have to cross one more compliance hurdle before the New Year. They must provide additional information for supplementary KYC (know your customer) and Foreign Account Tax Compliance Act (FATCA)/Common Reporting Standard (CRS) compliance to their mutual funds. This is mandatory for all applicants, including joint holders, guardians and those with the power of attorney. If investors fail to update the information before December 31, they will not be able to transact (except redemptions) in mutual funds.
Predictably, there is a lot of confusion among investors. They have so many queries, but they don't know whom to ask for clarification. Here are some queries that came our way: should I update the information with every mutual fund I have invested? I have updated the information with CAMS, should I also update it with Karvy? Is there a single place where I can update the information and finish it off? Should I also update the information for the second holder?
To begin with, investors can update their information either offline or online. Investors can pick up the form and fill it and submit it at investor-service centres and points of service of mutual funds. They can also visit the websites of their funds, Karvy, CAMS, etc., and take a printout of the form and fill it and mail it to the mutual-fund company.
If investors have investments in just one or two mutual funds, they have the option of visiting those mutual-fund websites and updating the information online. If investors have investments in several mutual funds, they can visit the websites of registrars and transfer agents (RTAs) of mutual funds like CAMS and Karvy and update the information online. This is a relatively easy option as CAMS and Karvy together service almost every mutual fund in the country.
According to the website of CAMS, it services 15 mutual funds, viz., Birla Sun Life, DSP BlackRock, HDFC, HSBC, ICICI Prudential, IDFC, IIFL, JP Morgan, Kotak, L&T, PPFAS, SBI, Shriram, Tata and Union KBC. These manage 60 per cent of the total assets managed by the industry. Karvy's website lists the names of 23 mutual funds serviced by the company: Axis, Baroda Pioneer, Goldman Sachs, BOI Axa, Canara Robeco, Deutche, Edelweiss, IDBI, Franklin Templeton, JM Mutual Fund, LIC Nomura, Mirae Asset, Motilal Oswal, Peerless, DHFL Pramerica, Principal, Quantum, Religare, Reliance, Sahara, Taurus and UTI.
If you have investments only in mutual funds serviced by a single registrar, say, CAMS, you need to update the information only with that particular registrar. However, if you have investments in mutual funds serviced by both CAMS and Karvy, you must update the information with both of them. If you have investments in Sundaram Mutual Fund, you should do the compliance offline. That means you will have to take a printout of the form, fill it and mail it to the company.
You can also visit the website of MF Utilities. Around 25 mutual funds participate with MF Utilities. If your investments are only in these funds, you can join MF Utilities and update your information in one go. However, remember that MF Utilities is a platform to buy and sell mutual-fund schemes across various participating AMCs. Investors should apply for a Common Account Number (CAN) to carry out transactions, including updating additional KYC and FATCA/CRS.
Website addresses (Shortened URLs)
Keep these ready
Details needed to generate one-time password: PAN, date of birth, folio number, bank account number Common Account Number (CAN), depending on the website
Extra inputs required
- Name
- Country of birth
- Place of birth
- Address for communication
- Gross annual income
- Occupation
- Are you politically exposed?
- Net worth
- Net worth date
- Source of wealth
Is your country of tax residency other than India?
Disclaimer: This content is for information only and should not be considered investment advice or a recommendation.
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