I am planning to invest on Groww. I want to know how much time it takes to get my KYC done? What kind of documents are required?Asked
It takes 4-5 working days approx to complete the KYC process. KYC compliance is a mandate for investing in mutual funds. Then, you can purchase mutual funds easily from anywhere, anytime on Groww.
It has become much simpler and easier to buy mutual funds nowadays. You will need the following details to start investing in mutual funds:
1) KYC process
- Address Proof
- PAN Card
2) Bank account
- Investors don’t really need a demat account to invest in mutual funds. you can easily buy mutual funds using net banking.
- It is the most preferred mode of buying mutual funds for the majority of investors.
- Mutual funds provide a statement of account to investors which shows details of investor’s holdings, purchase value, number of units, current value of investment,etc.
- Also there is a cost attached to the demat transactions such as transaction charges and annual fees. Considering all these factors of demat account, transacting in mutual funds without a demat account is more convenient for the investors.
KYC process on Groww can be completed in 2-3 days.
Under the Prevention of Money Laundering Act (PMLA), Know Your Customer (KYC) norms have been mandated to track the legality of funds used in an investment. KYC is a one-time process which every first-time mutual fund investor needs to follow, to be able to invest in a mutual fund. KYC can be done in any of the following ways-
· Physical KYC- Investor needs to download the physical KYC form from the website of the fund house or mutual fund agent. Completed KYC form needs to be submitted at the branch office of mutual fund house or agent. This process can usually take a couple of days to complete.
· E-KYC Aadhar- based on OTP – Investor can use online KYC facility using just the aadhar card number and PAN number, by visiting the website and following the easy process. After entering relevant details like aadhar and PAN number, investor will receive an OTP and KYC will be completed instantly. However, one can invest only up to ₹50,000 per fund house per year under this method.
· E-KYC Aadhar based bio-metric – This requires investor to verify his/her fingerprint via a specific device available with the fund houses at their branches or agents (facility available at investor’s home or their office). After verifying the fingerprint and entering few basic details, KYC process is complete instantly.
E-KYC is a very fast process and the process can be completed in 2-3 days via technology. Except e-KYC Aadhar based on OTP, there is no limit to the amount of investment (based on KYC).
Documents required, generally-