Mutual funds are a very popular investment avenue for individuals as they give good returns are offer flexibility. That is why many of you have a mutual fund portfolio to your name. Given the popularity of mutual fund transactions, the Government of India passed the Prevention of Money Laundering (Maintenance of Records) Second Amendment Rules, 2017. As per the rules, it became important to link mutual fund portfolios to Aadhar cards of investors.
The Government mandated the Asset Management Companies and mutual fund houses to collect the Aadhar details of their investors so that ambiguous transactions can be flagged. However, mutual fund Aadhar linking is not mandatory now but it is recommended. So, if you are a mutual fund investor, you are required to link your Aadhar card to your mutual fund portfolio. Do you know how?
How to link Aadhar with mutual funds?
There are different ways through which you can do the mutual fund Aadhar link. These ways are as follows –
You can do the mutual fund Aadhar link online as well as offline using any of these modes. All the above-mentioned modes allow linking of your Aadhar card to your mutual fund scheme online and also offline. While the online process can be done through your Smartphone, computer or laptop, for the offline process you would have to physically visit the offices of registrars or mutual fund companies and get your Aadhar linked.
Let’s understand the process involved in each of the above-mentioned ways of mutual fund Aadhar link.
Mutual fund registrars are institutions or trusts who are tasked with recording and maintaining the details of all the transactions of mutual fund investors. This makes it easy and convenient for mutual fund companies and Asset Management Companies to keep a track of all mutual fund transactions which are being done by their investors. In some cases, the mutual fund houses act as their own registrars while in other cases third party registrars and transfer agents are appointed by mutual fund houses for record-keeping of their transactions. Among such registrars and transfer agents, there are four popular mutual fund registrars which allow you to invest in mutual fund schemes through their platforms. They are CAMS, Karvy, Franklin Templeton and Sundaram BNP Paribas.
If you are registered with one or more of these mutual fund registrars, you can link Aadhar to mutual fund through them. This linking can be done both online as well as offline. The process for two of the most popular registrars is as follows –
You can also link your mutual fund to your Aadhar card through individual mutual fund houses. If you have a few mutual fund investments, this process is also feasible. The process is as follows –
The facility for mutual fund Aadhar link through SMS is provided only by Karvy. So, if you have a mutual fund portfolio with Karvy you can link your Aadhar details to your portfolio by sending an SMS from your registered mobile number. For availing the SMS facility your mobile number should be registered with Karvy. To send an SMS, you should type the following message on your mobile –
ADRLNK<Space><PAN><Space><Aadhar Card Number><Space><Y>
The message should then be sent to 9212993399. Once the SMS is sent you would get an acknowledgement SMS from Karvy. When the linking is done, another SMS would be sent informing you about the successful linking of your mutual fund portfolio with your Aadhar card.
Mutual fund Aadhar link – the offline mode
You also have the option of linking your mutual fund account to your Aadhar card offline. To link offline, there are different options. These options are as follows –
If you are linking through CAMS, download the Aadhar Update Request Form from the link https://www.camsonline.com/pdfdocuments/Aadhaar%20Update%20Request%20Form_CAMSV1.2.pdf.
Fill in the form, sign it and submit it at the nearest CAMS office. You would also have to submit a self-attested copy of your Aadhar card to complete the linking process. CAMS would, then, verify your details and link your mutual fund portfolios to your Aadhar card.
If you choose Karvy or any other registrar with which you have a mutual fund portfolio, you can download the Aadhar linking form available on the registrar’s website and fill it up. The form is also available at the office of the registrars and you can fill the form when you visit the office for linking Aadhar with mutual funds. The filled form should be submitted along with a self-attested copy of your Aadhar card for verification purposes. The registrar would then, verify your details and link Aadhar to a mutual fund. You would get a confirmation message or an email after the linking is successful.
You can also visit the office of the mutual fund houses whose schemes you have invested in. The offices of the AMCs (Asset Management Companies) also have a form for linking Aadhar with mutual funds. Avail the form and fill it up. Submit the filled up form along with a self-attested copy of your Aadhar card. The AMC would verify your details and link Aadhar with your mutual fund portfolios. You would receive a successful linking message when the process would be completed.
Who is required to do mutual fund Aadhar link?
The linking of mutual funds with Aadhar is not mandatory. However, if you do the mutual fund Aadhar link, you would be benefitted. Linking should be done by the following investors –
Benefits of linking Aadhar with mutual funds
Though the mutual fund Aadhar linking is not mandatory, it is beneficial if you link your Aadhar card to your mutual fund portfolio. By linking your Aadhar with your mutual fund schemes you help prevent the circulation of black money in the economy. When linking is done, your investments can be traced and there is a proper paper trail allowing the Government to flag any fraudulent transactions.
Moreover, once your mutual fund scheme is linked with your Aadhar, you can use your Aadhar details to authenticate further transactions. Linking Aadhar with mutual funds is a one-time process. Once linked it becomes easier for you to invest in other mutual fund schemes. When you invest in other schemes, the need for KYC is eliminated since you already have an existing portfolio which has all your KYC details.
Thus, it makes it easier for you to invest any time, anywhere without the need for elaborate documentation. The linking process is also facilitated online ensuring that you are able to link your mutual fund schemes with your Aadhar card in the easiest possible manner.
So, if you invest in mutual fund schemes, link your investments with Aadhar. The process is simple, easy and makes future investments a breeze.
Yes, if you have mutual funds in a Demat form, you can link them with your Aadhar card. To link them, however, you would have to follow the process specified by the depository participant. You can link your mutual funds online or offline through your depository participant.
If a minor is an investor in a mutual fund scheme, linking of his/her Aadhar is not necessary. The guardian of the minor, however, should link his/her Aadhar with the mutual fund scheme in name of the minor.
No, the portfolio does not become non-operational if you don’t link it to your Aadhar card. The linking of a mutual fund with Aadhar card is optional and not mandatory.
NRIs are not issued an Aadhar Card since they are not a resident citizen of India. As such, if you are an NRI and have a mutual fund scheme in your name, linking Aadhar with mutual funds would not be applicable for you.
Yes, you can link your Aadhaar card details with your mutual fund account even if it is in a Demat form. To do the linking you would have to approach the depository participant. The linking can be done online through the depository participant’s website or the website of the mutual fund house as well as offline by visiting the office of the depository participant.
In case of a HUF, the Aadhaar details of the Karta of the HUF should be linked to the mutual fund account.
You should contact the mutual fund house if the linking is not updated. There might be an error in the Aadhaar card number or your fund folio number which might have resulted in the failure of the linking. So, contact the mutual fund house to find the reason for the linking not being updated. You can also try and link it again by providing the correct information.