The new financial year has begun and many investors will be considering starting a new investment. If you are looking to invest in mutual funds, SIP is a great way to invest. In the equity mutual fund scheme, many investors, paper (and pie) executives who want to start investing through Systematic Investment Plan (SIP) are scared.
Well, you do not have to handle paper or use your foot. Simply switch your legs, switch to computer and you can start SIP online from your home or office.
Before you start SIP, you first need to know your customers (KYC). KYC investments need to be invested in mutual funds. You have to present identity proofs, address proofs and photographs. You must also confirm your physical existence through personal verification or (IPV).
You can complete all these things electronically through EKAYC. Birla Sun Life, Quantum etc. Most fund houses like this start providing these services through their website. All you need to do is click the link and follow the steps.
Alternatively, you can also visit KYC Registration Agency, CAMS KRA Online. This is a centralized and one-time process. You do not have to separate this with every fund house you want to invest. CAMS is not the registrar and transfer agent for every mutual fund, some of the mutual funds are looked after by the counter. So you should check the services you need to fund your choice.
The correct steps for EKAYC in each fund house are different. However, largely the structure is the same.
Basic information: The system will notify you first of all in order to provide all the personal information online forms. This will include name, date of birth, mobile number, address etc.
Upload the document: In the next step, you will have to scan your PAN (Scanment Account Number) and copy the address proof.
Video call: To meet the need for IPV (Individual Investigations), the fund house will ask you to choose the right time slot, through which you can confirm your physical existence through webcam. Keep your original PAN card and address proof handy because you will be asked to show them during the video call.
Aadhar Based EKAYC
If you take the support, the above process will be easy. It will pre-populate the form with all your basic details available in the UIDAI database by entering your Aadhaar number and authenticating it with UTP (One-time password) sent by UIDAI. There is no need of an IPV through video call to complete the process through the basis.
The UIDAI database already has your biometric information. However, if you do not submit your PAN details, you will not be allowed to invest more than Rs 50,000 in the financial year. The limit can be increased by submitting PAN.
The last step
Now, visit the Fund House website and find the registration link for the new account. This is usually located below the login key. This fund will direct you to a simple form to create an online transaction account with a fund.
Keep your checkbooks and cell phones easy because you need to fill in your bank details and verify your account through OTP.
Once you have created an account, just log in, select a mutual fund scheme, select the SIP date and submit your request. Congratulations, you’ve started your SIP.