What is KYC and why is it important for mutual fund investments?

KYC (Know Your Customer) is a mandatory process to verify the identity and address of investors. It is crucial for preventing money laundering and ensuring the integrity of financial transactions.

What are the new SEBI rules regarding PAN and Aadhaar linking for KYC?

As of October 2023, SEBI mandates that all mutual fund investors link their PAN with Aadhaar by March 31, 2024.

Can NRIs and foreign nationals complete the KYC process for mutual funds?

Yes, NRIs and foreign nationals can complete the KYC process. They need to submit a copy of their passport, PIO Card, or OCI Card along with proof of overseas address.

Can I submit my KYC online?

Yes, KYC can be completed online through eKYC using Aadhaar-based OTP or video verification via KRA or mutual fund platforms.

What happens if my KYC is not completed or updated?

If your KYC is not completed or updated, you will not be able to invest in mutual funds.

What is the Mahila Samman Savings Certificate?

The Mahila Samman Savings Certificate is a government-backed small savings scheme aimed at providing financial security and encouraging savings among women and girls.

Can I invest in MF without KYC?

No. KYC is compulsory before investing in any mutual fund as per SEBI guidelines.

How to complete KYC verification online?

You can complete it through KRA websites or AMC platforms using PAN, Aadhaar OTP, and video verification.

How to complete KYC for mutual fund?

Submit PAN, address proof, photo, and complete eKYC or in-person verification through KRA or mutual fund distributors.

Is Aadhaar mandatory for mutual fund KYC?

Aadhaar is mandatory for eKYC. However, offline KYC can be done using other valid documents like PAN and address proof.

What is the 7/5/3-1 rule in mutual funds?

It is a thumb rule for equity returns: 7% in 7 years, 5% in 5 years, and 3% in 3 years—used for expectation planning.

Is KYC required for mutual funds?

Yes, KYC is mandatory for all investors before purchasing or redeeming mutual fund units.

Can I do KYC without visiting the branch?

Yes, online eKYC and video KYC allow completion without visiting any office.

Are bank KYC and mutual fund KYC the same?

No. Bank KYC is separate. Mutual fund KYC must be done through a KRA registered with SEBI.

Can we do eKYC at home?

Yes, eKYC can be done at home using Aadhaar OTP or video verification.

What is the 3 5 10 rule for mutual funds?

It suggests investment horizons: 3 years for debt funds, 5 years for hybrid funds, and 10+ years for equity funds.

What happens if KYC is not done?

You cannot invest, redeem, or switch mutual funds until KYC is completed.

How to update Aadhaar in mutual fund?

You can update Aadhaar through the KRA portal or AMC website by submitting Aadhaar details and OTP verification.

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Complete Your Mutual Fund KYC - SEBI New Rule

Pragya Pathak

Author

Updated: 30-12-2025 at 3:30 PM

India is on the pathway to digitisation, wherein various regulatory authorities and departments are starting to shift their traditional offline method of working to an online digitised method, and one such regulatory authority that is doing the same is the Securities Exchange Board of India (SEBI). The Securities Exchange Board of India recently released a notification that clearly instructs that from now onwards, investors will have to mandatorily link their PAN-Aadhaar to get their ‘KYC Validated’ on mutual funds.

This is being made mandatory by the SEBI to make the existing system much stronger and sturdy against fraudulent activities and fraudsters, as eKYC verifies the investor’s identity. Please note that this is not optional but necessary for carrying out financial transactions, including applying for existing govt schemes; however, those who don’t comply with it will be restricted from applying if they fail to redo their KYC validation, along with other penalties.

Read the article to learn more about the online KYC registration for mutual fund, ranging from its meaning and changes to the list of required documents and the process of online KYC mutual fund.

Overview

The table below summarises some key details about the Mutual fund eKYC that one should know.

Recent notification regarding	Mutual Fund eKYC
Regulatory authority	Securities Exchange Board of India (SEBI)
What are investors supposed to do?	Link their PAN with Aadhaar cards
Applies on	Individual and non-individual mutual fund investors
Mode of eKYC	Mutual fund online KYC and offline

What Is An Online KYC Form Mutual Fund?

KYC or ‘Know Your Customer’ is a process mandated by SEBI that helps in the proof of identity and address for investors. KYC is done to safeguard against money laundering. This aims to enhance the security and transparency of the investment process.

Investors with ‘KYC Validated’ status do not have to re-do the process and can continue to invest without any issues. Mutual Fund investors with ‘KYC Verified’ won’t be affected much, but they will not be allowed to invest in new mutual funds until they submit the KYC documents. Investors with ‘KYC on hold’ will have to wait till their KYC process is done again to do financial transactions or invest.

A press release issued on April 25, by the 5 KYC registration agencies (KRAs) says, “All KRAs put together hold KYC records of 10.83 crore. Out of which, 73% of KYC records are under 'KYC validated' status, 15% of KYC records are under 'KYC Registered' status, and balance 12% are under 'KYC On-Hold' status”.

Also Read: SEBI Young Professional Program 2025- A Golden Opportunity For Aspiring Professionals

What Are The Changes In eKYC Mutual Fund Rules?

The new eKYC Mutual Fund rules will focus on making the investing process more streamlined and secure through various measures and ways, some of which are laid down below for one's better understanding:

Enhanced Verification

One of the eKYC Mutual Fund rules is that, from now on, investors are required to provide more detailed information and documentation to enhance security and safety. This is a verification process that cannot happen swiftly and accurately without the correct data filled in by the investors.

More Updates

KYC details have to be updated periodically to ensure that the details provided, such as address, contact details, and identity proofs, are up-to-date and not out-of-date as per the new eKYC Mutual Fund rules. Individuals who do not comply with the new eKYC rules will have to face several consequences, such as an account put on hold till the eKYC is completed.

Online Verification

To simplify the verification process, the Securities Exchange Board of India launched an online verification procedure through which investors can update their identity and address proof, and other relevant details that need correction. The online portal not only makes the lives of people easier by allowing them to do formal processes from the comfort of their homes but also helps the authorities in reducing paperwork and saving time.

How To Update KYC Online?

Every investor will have a different set of steps to follow depending on where they invest their mutual funds. The mutual fund kyc update online process is described below in a stepwise manner for one's reference:

Step 1: Please visit the mutual fund's website.

Step 2: Log in to your account using your credentials.

Step 3: Navigate to the modify or update KYC option to start the mutual fund KYC update online process.

Step 4: Enter the required details carefully and accurately.

Step 5: Upload the scanned copies of all the necessary documents.

Step 6: Submit and wait for the details to be validated by the KRA official database.

How To Update KYC Offline?

There is an offline procedure as well for eKYC update of mutual funds. Investors can follow these steps if they wish to update their KYC through the offline method:

Step 1: Please begin the eKYC process by downloading the KYC form from the mutual fund website.

Step 2: Fill out the form with accurate details carefully.

Step 3: Attach all the required documents.

Step 4: Submit the form to the mutual fund company or the RTA’s office.

Step 5: Wait for the in-Person Verification (IPV) to cross-check the documents and identity.

What Are The Documents Required For eKYC For Mutual Fund?

Individuals or non-individual investors have to submit some supporting documents to update their mutual fund KYC status. The list of those documents for both types of investors is as follows:

eKYC For Mutual Fund By Individual Investors

Proof Of Identity

Proof Of Address

Aadhaar card
Voter’s ID
Driving licence
Passport
Registered Lease Agreement
Utility Bill (less than 3 months old)

eKYC For Mutual Fund By Non-Individual Investors

For non-individual investors to update KYC, it depends on the type of entity it is, like a company, a trust, a partnership firm, a body of individuals, etc.

Conclusion

Understanding the Know Your Customer (KYC) process is crucial and now mandatory for mutual fund investors as instructed by the Securities Exchange Board of India. This isn’t simply a mandate but a measure of protecting the investors and their assets from fraudsters and fraudulent activities. All investors should make sure the linking of their PAN with their Aadhaar card is updated on time; otherwise, they might not be allowed to make transactions or even invest in new mutual funds.

We urge you to please keep yourself updated and educated on all such updates to ensure complete streamlining of the investing process and to avoid hindrances or delays.

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