Know Your Mutual Fund Application Form

If you are unable to monitor the complexities of the markets on a daily basis, mutual funds are a reliable approach to invest in them. For those seeking long-term market-linked returns, it is a preferred method of market participation. Mutual funds in India provide you with the freedom to choose from a variety of funds based on your risk tolerance and financial objectives. 

Once you've decided to invest in the markets through mutual funds, the next objective is to understand the plan in which you'd like to invest. Mutual fund plans are classified according to their sectors and trends. However, to invest, all you need to do is fill out the application form and the mutual fund kyc form. If you are unsure how to fill out a mutual fund application form, this guide will assist you. 

How to Fill The Mutual Fund Application Form?

Step 1: To fill out the mutual fund application form online, you must first register on the fund's website. 

Step 2: The first applicant (you) must fill out this form with his personal information. It includes the name, PAN number, address, phone number, email address, and other details. In the case of a minor, the guardian's name and the relationship status are required. 

Step 3: You must specify the mode of holding. If you want to invest through a joint account, you have to give the name of the other individual and your relationship status (spouse/parents). 

Step 4: The next step is to enter your bank information and choose a fund plan. You must decide whether to invest in Regular or Direct funds. In India, mutual funds offer two types of strategies: regular plans and direct plans. The fund distributor's commission or brokerage is included in the standard plan. There are no such costs in the direct plan, and the benefits are passed directly on to the investors. 

Step 5: The next stage is to finalise the investment details. It has two investing options: one-time investment and online SIP investment. If you want to participate in SIP, you must complete the SIP enrolment and OTM forms and submit them along with the application form. 

Step 6: Finally, you must provide your tax information and your Demat account details (to hold units in Demat form). 

What is Mutual Fund KYC Form?

SEBI has mandated specific KYC rules for financial institutions and financial intermediaries, including mutual funds, in order for them to know the clients. This would take the shape of verifying the client's identification and address, as well as financial condition, occupation, and any other demographic information. Mutual fund KYC forms are required for every applicant/investor (including existing investors/joint holders) when enrolling in any SEBI registered mutual fund, regardless of the investment amount. 

As a result, any KYC Rating Agency would require each investor (including applicants in a folio) participating in mutual funds to be fully KYC compliant. The different mutual fund houses may refuse transactions if valid details are not provided while filling out the mutual fund kyc form. This one-time verification remains valid for all mutual fund transactions. 

Investing in mutual funds is sensible and provides you with the opportunity to achieve your long-term financial goals. You can use a financial planning calculator in India to determine the amount of SIP and the duration of investment to achieve the desired returns.