What is KYC?
Know Your Customer — mandatory verification of investor identity before any mutual fund investment.
Understanding KYC
KYC is the mandatory process of verifying an investor's identity before allowing them to invest in mutual funds. It involves collecting PAN, Aadhaar, address proof, and photograph, and is governed by SEBI and RBI guidelines.
Once an investor completes KYC through a KYC Registration Agency (KRA), the verification is valid across all mutual funds and other financial products. Investors can check their KYC status online using their PAN. KYC once done does not need to be repeated for new fund houses.
For IFAs, ensuring clients are KYC-compliant before placing any transaction is a regulatory requirement. Non-KYC transactions are rejected by RTAs. With the advent of CKYC and e-KYC via Aadhaar OTP, the process has become significantly faster.
“For Indian IFAs, a clear understanding of kycis essential to managing a compliant and profitable advisory practice.”
Why KYC Matters for Your Practice
Staying on top of kychelps you maintain compliance, serve clients accurately, and build a sustainable advisory business. Fin-Soft's software is built specifically for the needs of Indian IFAs and corporate distributors — covering everything from portfolio tracking to trail reconciliation.
Fin-Soft Solutions' software suite — Wealth Track Auto, AMFI Web, and Online Transaction — automates the workflows related to kyc for investment advisors and corporate distributors across India.
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