Is Your Mutual Fund Record Up To Date:

Ramesh has some very old mutual fund investment made decade ago.As at that time, even pan number was not compulsory , there were no mobile phones, signatures are changed over a period of time.

so now when he need some money, he is running to prove his identity to asset management company.This happens as he do not keep / update his mutual fund record up to date.

If it is recent investment then there are high chances that all records have updated.But if this is old folio and you haven’t made any updates then check your record for following.

1. Update nomination:In 2011,SEBI introduced new rules about mutual fund nomination.Number of folios created before 2011 do not have nominations as it is ignored aspect.Check whether you have made nomination or not.If there is no nomination then legal heirs may need to do some additional work like court order for transmission.
2. Update NEFT / Epayout :Check whether payout mode is electronic or not.Its better if money is directly get credited in bank ccount Investor just need to provide then a simple form and cancelled copy of cheque to update e-payout.
3. Update KYC: KYC is mandatory for new investments but old folios may have invalid addresses.So complete KC formalities.For this you need a simple KYC form, PAN copy and address proof.
4. Signature: check whether your signature have changed significantly in recent years or if there is change in signature after marriage. Then update your signature through kyc form.If there is signature mismatch then investor may need to provide bankers attestation each time to update financial / non-financial transactions.
5. Add multiple bank accounts : Attach 2-3 active bank accounts in your folio so that at time of redemption you can use appropriate & convenient account.One can not update or add bank account at time of redemption.

So its always better to keep record up to date as

• It minimizes risk of fraud.
• Leads to smooth transactions like switch,purchase and redemption.
• Leads to easy dividend payouts if opted.
• It leads to easy transmission.