Learn How to do KYC for Mutual Funds Instantly

Gaurav Seth
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isVerifiedExpertAuthor is a Zfunds Verified Expert
Gaurav Seth

What is KYC?

KYC, the abbreviation for Know Your Customer is a process for the verification of the legal identification of the customers or clients when opening an account with financial entities. The KYC process involves verification of identity & address, In-Person Verification(IPV), financial information, occupation, and other demographic information of the clients with the self-attested documents presented as proof. It is conducted in order to ensure there is no money laundering and the financial transactions are not done for any unethical or criminal activities.

This KYC information is submitted to the KYC Registration Agencies (KRA)  which maintain the information records of the clients & their KYC status. The investors need to do the KYC process only once with any of the KRAs registered with SEBI such as CVL, CAMS, KARVY, NSE & NSDL. Once done, the investor can engage with any financial entity and do transactions, as it is centrally used for all the activities with the financial intermediaries.

The KYC process is not unique to mutual funds, but as per the directives of the Reserve Bank of India in 2004 & 2005, almost all financial investments now require a customer to be KYC compliant. Some of the important avenues where KYC is mandatory are:

  1. Bank accounts
  2. Application for loans
  3. Credit Card application
  4. Locker opening

Not only in financial transactions, but also in order to apply for a new mobile connection one needs to get KYC approved.

Read More: Kisan Vikas Patra

Is it mandatory to get KYC done for investments in Mutual Funds? 

Yes, it is mandatory to be KYC compliant for every mutual fund investor under the Prevention of Money Laundering Act, 2002, and rules framed by SEBI to prevent any kind of money laundering or terrorism funding activities.

How to do KYC for Mutual Funds?

You can do the KYC process through any registered broker, AMFI distributors, your financial advisor or by visiting any AMC, KRAs office.

There are two ways you can do the KYC process i.e Offline and Online. In Offline KYC the individual has to submit all the documents required physically to the distributor or registered financial advisor and in online, one can digitally upload all the documents required for KYC along with filling the necessary information on any registered Distributor’s, AMC’s or KRAs website & apps.

Offline KYC for Mutual Funds

You can get the KYC Form from your MF distributor or you can also download the KYC form from the KRAs website. Then you have to submit the filled KYC form requiring the demographic, financial & identification information along with the self-attested document proofs needed to be submitted.

Documents Required

All the documents presented as a proof for verification must be self-attested by the individual.

Identity Proof

Any one of the following documents are required to be submitted as an identity proof:

  1. Passport
  2. Voter ID
  3. Driving license
  4. NREGA Job Card
  5. PAN Card
  6. Adhaar Card

Address Proof

Any one of the following documents are required to be submitted as an address proof:

  1. Passport
  2. Voter ID
  3. Driving license
  4. NREGA Job Card
  5. Adhaar Card
  6. Utility Bill(not more than 2 months old)
  7. Bank or Post office account statement

Passport Size Photograph with signatures

PAN Card (not required for eKYC)

Under eKYC for mutual funds, the investor can do the KYC process without submitting the PAN Card proof. But by doing eKYC, the individual can only make investments up to Rs.50,000 p.a. per mutual fund. If the investor wants to invest more, then CKYC is required which involves submitting a copy of the pan card.

Along with the above-mentioned documents, IPV(In-person Verification) needs to be done for the individual while submitting the documents by any of the mentioned authorized people which can be :

  1. Authorized officials of AMC
  2. Authorized officials of Registrar & Transfer Agent on behalf of AMC
  3. KYD compliant mutual fund distributors
  4. Manager of a commercial/co-operative banks or Multinational banks

Upon receiving the documents along with conducting the IPV, the distributor will verify the originals and then share it with KRAs. The whole process of KYC is generally completed within 3-4 days.

Online KYC for Mutual Funds

One way of getting your KYC done is through online mode. The investor has to login to the website or mobile application of the KYD compliant distributor or the AMCs website.

Getting your KYC done is very easy & quick on ZFunds App.

Steps to do Online KYC on Zfunds app:

  • Open the ZFunds App and go to the KYC section.
  • Enter PAN Card & Date of birth to check the KYC Status, if it is done already then you can directly invest in funds without having to do it again.
  • If KYC not registered, then you will be redirected to a page for filling KYC Information
  • You will be asked to give details regarding name, mother’s name, father’s name, Date of birth, occupation and other demographic details.
  • After filling the information, you have to upload the following pictures :
  1. Photograph
  2. Signature
  3. PAN Card
  4. Adhaar Card

            Then Click Next

  • Then you will be required to fill Bank details i.e Your Bank Account no., Bank IFSC Code.
  • Then Submit.

You will be done with the KYC process and now, we will verify all your details in the CAMSKRA.

You will receive a confirmation message & a mail, once all your documents are verified. Once your KYC is approved you can start your investments in Mutual Funds.

How can I check my KYC Status?

Once you have applied for KYC verification, the process of checking the status for the same is fairly simple. 

  1. An investor needs to visit the CDSL
  2. Enter your PAN number when prompted to do so.
  3. IF the message says ‘MF-Verified by CVLMF’, it means that the KYC has been processed and verified.
  4. In case KYC has not yet been verified, the status will be shown as ‘Pending’.


Q. What is KYC?
A.  KYC, the acronym for Know Your Customer is a one time process for the verification of the legal identification of the customers or clients when opening an account with financial entities. It is mandatory for the investors to be KYC compliant for investing in mutual funds.

Q. What are the documents required for the KYC process?
A. Following self-attested documents are required for completing the KYC process:

Identity Proof ( Photocopy of the any 1 of the following documents: Passport, Voter ID, Driving license, NREGA Job Card, PAN Card, Adhaar Card)

Address Proof (Photocopy of the any 1 of the following documents: Passport, Voter ID, Driving license, NREGA Job Card, Adhaar Card, Utility Bill(not more than 2 months old), Bank or Post office account statement)

Passport Size Photograph with signature

PAN Card (not required for eKYC)

For online KYC, the investor needs to upload the pictures of the above-mentioned documents on the app, along with the picture of the signatures.

Q. Can I do KYC online?
A. Yes, one can do the entire process of KYC online. The investors just need to upload the required documents, fill personal details, bank account information, and other details on the ZFunds app.

Q. How to check KYC status?
A. One can check the status of the KYC by visiting the CDSL Website and entering the PAN details. If the KYC has been verified, the “MF-Verified by CVLMF” message will appear and if the KYC is yet to be verified, the “Pending” message will appear on the screen.

Q. What are the charges for the KYC Process?
A. The KYC process is completely free, there are no charges for getting your KYC done.

Q. Do I have to get my KYC done every time I make new investments?
A. No, KYC is a one-time process and you are not required to perform the process again while making new investments. Once you are KYC compliant, you can make transactions through any recognized financial entity in India.


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