does one need to have kyc to invest in mutaul fund

Discussion in 'Ask A Query About Your Stock Picks And Portfolio' started by jay50, Feb 8, 2017.

  1. jay50

    jay50 New Member

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    if one invests small amount like Rs 15000- 20000 does one still need to have kyc
     
  2. Srouta Mukherjee

    Srouta Mukherjee Well-Known Member

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    No upto Rs. 50,000 no kYC is required as per SEBI.

    "As per the Ministry of Finance circular, investments in mutual fund schemes (including investments in SIPs) of up to Rs 50,000 per investor per year per mutual fund shall be exempted from the requirement of PAN"

    Are you going for debt mutual fund or equity mutual fund?
     
  3. jay50

    jay50 New Member

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    i am little bit undecided about what to buy , but i am inclined towards equity funds

    i has little bit of risks but have more returns

    also can you tell me how would i be able to buy mutual funds , i have gone to few mutual funds companies website

    and for new investment , first thing they ask is for kyc

    so how would i be able to buy it online
     
  4. Srouta Mukherjee

    Srouta Mukherjee Well-Known Member

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    If you have money for short term go for debt scheme. If you have money for long term go for equity because inflation at 8% means return is nil in debt fund. In equity 15% means some addition is there to capital after inflation.
     
  5. Srouta Mukherjee

    Srouta Mukherjee Well-Known Member

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  6. G_One

    G_One Member

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    KYC is a simple process, why do you want to avoid it? Fund houses themselves will complete all the formalities for you and it will get rid of headache in future if rules change.

    Regards
    G1
     
  7. jay50

    jay50 New Member

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    i dont have pan card , never paid income tax

    by annual income is less , so it does not come into tax limit

    i do have aadhar card , but i just dont like the idea of everything linked to aadhar card

    so is there any way to invest money

    if not are there some other investment that does not require pan or aadhar card
     
  8. Newbie

    Newbie New Member

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    Even if you have tax free income, it is good to file returns. Do get a PAN card and start investing.
     
  9. Pranalisharma

    Pranalisharma New Member

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  10. Warren Buffet Jr.

    Warren Buffet Jr. Member

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    Last edited: May 13, 2017
  11. D Mohan

    D Mohan Member

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    Also FATCA IS NECESSARY.
     
  12. starry_eyes

    starry_eyes Member

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    Being exempted from the requirement of furnishing PAN details is quite different from being exempt from KYC requirements
     
  13. starry_eyes

    starry_eyes Member

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    What use is FATCA certificatiom put to?
     
  14. D Mohan

    D Mohan Member

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    You declare that you are not earning any income from a foreign source (mainly US). You also don't have a residential address in a foreign country (mainly US). FATCA is an acronym for the Foreign Account Tax Compliance Act.
     
  15. starry_eyes

    starry_eyes Member

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    But then why do we give this declaration to Bank's / MF's?

    Why are bank's/MF to know if I earn incomes from overseas or if I have a residential address overseas? I could very well be a Resident Indian with a house say on London.
     
  16. D Mohan

    D Mohan Member

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    If you earn income from overseas and wish to use the money for investment in India you have to get prior permission from appropriate government authorities. If you have a house in london, it is possible that you may be having a income source in london. so you have to declare.
     
  17. starry_eyes

    starry_eyes Member

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    I understand I have to declare - but declare to who? Bank's and Mutual Funds- I don't think so. In my tax return - possibly yes if I am a Resident Indian. And any permissions that may be required i don't think are through FATCA.


    I could be wrong though
     
    Last edited: May 16, 2017
  18. starry_eyes

    starry_eyes Member

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    A cursory search on the net seems to suggest that

    FATCA concerns US nationals and is an agreement which the USA has in place with the Rest of World whereby designated authorities in each country share information about incomes earned and assets owned by US nationals in their country
    It's thus a tracking tool of global assets and incomes of US nationals

    When you this give a FATCA declaration - that you are indian citizen, this info is used by banks etc to actually filter you out of reportable data.
     
  19. D Mohan

    D Mohan Member

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    If you have investments in Mutual Fund Units and Shares, you are required to submit FATCA declaration as per SEBI rules. FATCA for investments in Mutual Fund Units, to be submitted to respective Registrars of the Mutual Funds. FATCA for investments in Shares, to be submitted to your broker. If you donot do so, your mutual fund account and share trading account will be frozen. This means you will not be able to sell your mutual fund units and shares. Contact your Mutual Fund consultant and Share Broker for more details.
     
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