Update vital personal details in your folios

The beginning of the year being a time to take stock of and reorganise personal portfolios, we give below a check-list of personal details that should be kept current and updated in mutual fund folios. This helps avoid delays in receiving payments and facilitates successful transactions.

PAN Details and KYC:

There are investors who invested several years ago, when PAN was not mandatory. Many Mutual Funds have sent communications to investors to update the same but there may be investors whose PAN and KYC status is not registered in their folios. It is imperative that investors check older folios, become KYC-compliant and update PAN and KYC status in their folios. It is very important to have the PAN updated as mutual funds now send a consolidated account statement for transactions, with folios consolidated based on the investor PAN.

A change in name

Investors may change their name due to many reasons; there is a laid-out procedure for recording the same with mutual funds. Funds/Registrars will be able to provide details on the process and the documentation required.

Current Bank Details, IFSC Code

You may have closed a bank account or simply use another account for convenience. It is imperative that you register the new account with the mutual fund. Investors can add additional bank accounts to their folios or delete an existing bank account. The request may be submitted with the required documentation to the Registrar who will process it and send a confirmation.

Receiving payouts of dividend and redemption through electronic credit is a convenient, faster and safer way. Update your IFSC code and request for electronic credit to make payout-receipt-management hassle-free.

Change of Tax status

Any change in status of an investor should be recorded with the Fund. For instance, if a minor investor has attained the age of majority, the investor would have to approach the Fund with a request and the required documents to effect the change in status. The folio would be locked for transactions once the investor attains the age of majority till such a change in status is duly effected in the folio. Similarly, if you have become a Resident Indian from NRI or vice-versa, it should be registered with the mutual fund.

Address

KYC-compliant investors would have to record a change in address with CDSL Ventures Ltd (CVL). Once CVL records the change, it will automatically be updated in all folios of the investor where KYC status is updated.

Registration of Nominee

Registering a nominee is often ignored and in the event of an unfortunate event, the procedures to unlock the investment get complex. Investors who have not registered a nominee at the time of filling the application form can do so by downloading the relevant form from the Registrar web site and submitting it duly filled.

Contact details – email, mobile

Mutual Funds and Registrars offer several online facilities to investors. To access the facilities, investors should have their current email IDs registered in their folios. Many Funds send SMS alerts to investors when a transaction has been processed or when a SIP instalment is due, and registering the current mobile number would be beneficial. Updating these contact details entitles you to access a host of services.

Contributed by CAMS Viveka, an Investor Education Initiative from CAMS. The views expressed herein are general practices in the Mutual Fund industry and may vary on a case to case basis.

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