Mutual Fund Investment tip: With bank and fixed deposit interest rates going down fast, mutual funds have emerged as the most sought after investment option for many. While the returns are definitely higher, there are a few things you must keep in mind to ensure that there is no problem during redemption.
The Association of Mutual Funds of India (AMFI) had last year made it mandatory for the investors to update their Permanent Account Number (PAN) information in their mutual funds portfolios in order to have a hassle free redemption of their investments.
The decision came after an inspection by the Securities and Exchange Board of India (Sebi), wherein it was found that mutual funds and registrar and transfer agents had processed redemption requests even for folios where PAN details were not available.
To ensure there is no problem later on, the mutual fund investors are always required to provide PAN details at the time of completing the know your customer (KYC) formalities. However, some investors are exempted from providing PAN details.
Those who invest up to Rs 50,000 per year per mutual fund are not required to update PAN details, as they can provide other approved identity proofs too.
Meanwhile, investors who are required to update their PAN can do this either online on the website of the respective mutual fund or physically submit the PAN and KYC updation form along with the updated PAN copy to the mutual fund’s office. The process needs to be followed for each mutual fund investment.
Another way is to update KYC and PAN details using PAN/KYC change request form. The investor can use this form to update the details with the KYC Registration Agency (KRA) such as Cams Investor Services Pvt. Ltd and Karvy Data Management Services Ltd. After receiving the PAN/KYC details from the KRAs, will update the information across all mutual funds in which the investor has folios.
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SOURCE: https://www.w24news.com
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