How To Link To Aadhaar To MFs

PMLA Rules 2017 : Prevention of Money Laundering Act, 2017.

By this act it has become mandatory to link Aadhar Number To MF Portfolios.

Deadline is by 31st Dec, 2017.

There are  3 ways for linking purpose: –

  1. RTA(Register & Transfer Agents) Website                                                                                                                             a) CAMS * – Link to 15 service Fund houses in one go(CAMS = Computer  Aided MAnagement Services )                      b) KARVY – 17 MF service funds.                                                                                                                                         c) Franklin Templeton MF – Seperately not part of CAMS or Karvy.
  2. Directly from AMC – Website/ Local Office
  3. MF Distributors/Advisors- Aadhar link form + Aadhar Card Copy                                                                                                                                                                                                                                                                                                                                                                          Important FAQs                                                                             1.

Q – Is Aadhaar  required for all holders(?)

A- Yes, Aadhaar information is required for all holders (First holder, Joint holder, Guardian(in case of minors),and POA            holders(Power of Attorney) ).

Karta Aadhaar details are required for HUFs(Hindu Undivided Families).

Non – Individual Investors have to submit the Aadhar number of their authorized  signatory/ signatories.

Aadhaar Number is not required for the customers residing in J&K, Assam & Meghalaya.

Q- I am a NRI. Is it mandatory for me to update my Aadhaar Number (?)

A-No. As per existing UIDAI requirements, NRI’s are not eligible to enroll for Aadhaar. Hence, NRI’s are not required to          submit Aadhaar info.

Q- Is it a one -time activity?

A- Yes.

Riskometer of MFs

5 – low, 4 – moderately low, 3 – moderate , 2 – moderately high, 1 -high

5 = liquid & ultra – short term bond fund/ avg maturity < 90 days

4 = medium term bond funds (91 days< avg maturity < 3 years)

3 =  Income Funds, Guild Funds, (avg Maturity > 3 years), Arbitrage Funds, Debt Oriented Hybrid Funds (equity                        exposure < 20%).

2 = Diversified Equity Funds, balanced funds, Index ETFs, gold ETF’s.

1 = Sectoral Funds/ Thematic Funds , international funds, sectoral ETF’s.