KYCs are categorized into KYC Validated, KYC Registered, KYC On-hold and KYC Rejected, each with its implications for mutual fund transactions.
Investors with KYC Registered status face rejection of mutual fund transactions when investing in new fund houses, due to KYC modification processes.
Transitioning from KYC Registered to KYC Validated status is essential for investors to invest across various fund houses freely.
Investors can upgrade their status to KYC Validated for seamless investment across all mutual fund houses through Aadhaar-based KYC.
Aadhaar-based KYC simplifies the process by requiring verification of five key aspects: Name as per PAN, validated address, Aadhaar-PAN linkage, verified e-mail and mobile number.
Mutual fund houses are increasingly facilitating digital KYC or eKYC processes on their websites, streamlining KYC experience for investors.
Enhanced education and awareness among investors regarding the KYC process is essential.
