The mutual fund investment market in India is spread all across the country since the past few years. With many new investment avenues and products, the choice remains yours. Moreover, with online mutual funds, beginners are able to deal with their favorite investments in a better way. When it comes to investments, some of the essential factors that you need to keep in mind include returns from investments, types of investments, performance and KYC.
Learn all about automation and optimization in user data validation in the KYC process
'Know Your Customer' KYC is a term used to simply identify the investors and collect required information before they begin their investments. It is a must for all investors and applicants to understand the norms and rules for the same. 'Know Your Customer' is international concept where the data collected from the investors is utilized to avoid identity theft, fraud, money laundering and terrorist financing. With the help of this form, the financial institutions and banks are able to identify the investors.
Becoming KYC compliant
In the field of mutual fund investments, the importance of KYC cannot be overlooked. When you decide to invest in the mutual funds for the very first time, you need to submit a copy of it along with the investment application forms. An investment application form that is without the KYC acknowledgement is never approved.