What is KYC and Why is it Mandatory?
KYC (Know Your Customer) is a mandatory identity verification process required by SEBI before you can invest in any mutual fund in India. It verifies your identity, address, and financial standing to comply with PMLA (Prevention of Money Laundering Act) and SEBI regulations.
You need to complete KYC only once — it's valid across all mutual funds, AMCs, and investment platforms. Once KYC-compliant, you can invest in any mutual fund in India without repeating the process.
Documents Required for KYC
| Document Type | Required | Options |
|---|---|---|
| Identity Proof | Mandatory | PAN card (mandatory), Aadhaar, Passport, Voter ID, Driving License |
| Address Proof | Mandatory | Aadhaar, Passport, Bank Statement, Utility Bill (under 3 months) |
| Photograph | Mandatory | Passport-size photo (or webcam for online KYC) |
| Bank Proof | For investing | Cancelled cheque or bank statement with IFSC |
Most important: PAN card is mandatory for all mutual fund investments above ₹50,000 per year. Even for smaller amounts, PAN is practically required by all platforms.
Three Ways to Complete KYC
1. eKYC (Online — Easiest)
Most new investors use Aadhaar-based eKYC through AMC websites or platforms like Kuvera, Zerodha Coin, or Groww.
- Enter PAN number and verify
- Enter Aadhaar number
- Enter OTP sent to Aadhaar-linked mobile number
- Complete video verification (In-Person Verification / IPV) via webcam or phone camera
- E-sign using Aadhaar OTP
- KYC complete — takes under 15 minutes
Limitation: Aadhaar eKYC limits you to ₹50,000/year investment per mutual fund unless you upgrade to full KYC. For larger investments, proceed to full KYC.
2. CKYC (Central KYC — Recommended for Large Investors)
CKYC is done through KRA (KYC Registration Agency) like CAMS, Karvy, NSE KRA, or CDSL Ventures. Once done, your KYC is stored centrally and valid everywhere.
- Download and fill the KYC Application Form
- Self-attest copies of PAN and address proof
- Submit to any SEBI-registered intermediary (bank, AMC, distributor)
- In-Person Verification is done physically
- Receive CKYC number (14-digit) for future reference
3. Offline KYC Through MFD or Bank
Submit physical forms at any AMC office, CAMS/Karvy service centre, or through your mutual fund distributor. Takes 2–3 working days to process.
How to Check Your KYC Status
- Go to cvlkra.com → Check KYC Status → Enter PAN
- Or check on your AMC's website under "KYC Check"
- Status options: KYC Verified ✅, KYC Registered, KYC On Hold ⚠️, Not KYC Compliant ❌
Common KYC Rejection Reasons and Fixes
| Reason | Fix |
|---|---|
| Name mismatch between PAN and Aadhaar | Update name in Aadhaar UIDAI portal to match PAN exactly |
| Mobile number not linked to Aadhaar | Visit Aadhaar Seva Kendra for biometric-based update |
| Photo not clear/acceptable | Re-upload a clear, recent passport-size photo |
| Address proof outdated (over 3 months) | Use recent bank statement or utility bill |
| Signature not matching | Provide fresh signature on white paper, re-submit |
NRI KYC Requirements
NRIs (Non-Resident Indians) can also invest in Indian mutual funds with slightly different requirements:
- NRE or NRO bank account required
- Passport + overseas address proof mandatory
- FATCA declaration required
- eKYC may not be available — physical or video-based KYC required
Once KYC is done, investing is simple. Need help getting started? Book a free consultation and we'll guide you through the process from KYC to first SIP.