Mutual fund is one of the most fruitful investment options today. You can either invest one time or pay on a monthly basis. When invested judiciously, you can reap huge benefits both in long as well as short terms. Mutual funds pose less risk than stock market but may give returns as high as 40%. These funds not only help you in investing your money but also help in saving taxes through tax saver mutual funds. You also get high flexibility to make your own basket of funds from various industries and consolidate your investments in a diversified manner.
Why One Should Link Mutual Funds with Aadhaar?
Investors have been suggested by the government to link their mutual funds with Aadhaar. This has been done in accordance with the new amendments in the Prevention of Money Laundering (Maintenance of Records) Rules, 2005. Investors will have to link their mutual funds with Aadhaar and the deadline for it will be set after the Supreme Court delivers its verdict on PILs challenging the constitution validity of Aadhaar. You can still go for linking your mutual funds with Aadhaar now to prevent last minute hassles.
Who Should Link Mutual Funds with Aadhaar?
All mutual fund accounts need to be linked with Aadhaar. However, different investors have to link Aadhaar for mutual fund investments. Here is a list of investors who have to go for Aadhaar seeding for different types of investments:
- Aadhaar has to be furnished by first holder, joint holders, guardian (in case of minors), donors (for children’s schemes) or Power of Attorney (POA) holders.
- In case of Hindu Undivided Families (HUFs), only the karta has to submit his Aadhaar. None of the family members are required to submit their Aadhaar.
- NRIs are exempted from submitting Aadhaar as they are not eligible for one.
- Aadhaar is not mandatory for people having residential addresses in Jammu & Kashmir, Meghalaya and Assam. They have to submit any Officially Valid Document (OVD) instead along with the latest photograph.
- All authorised signatories have to provide their Aadhaar in case of non-individuals.
- Minors do not need to link their Aadhaar with Mutual Funds as their guardians already have submitted it. However, they have to provide their Aadhaar when they turn 18.
- Nominees nominated by the investor of mutual funds do not have to submit their Aadhaar details.
How to Link Mutual Funds with Aadhaar Online – CAMS and Karvy
CAMS and Karvy allows investors to link their mutual funds with Aadhaar online. This helps people in managing their accounts from the comforts of their home irrespective of the office timings. Let us have a look at the Aadhaar seeding process through both the institutions:
Linking Aadhaar with Mutual Funds through CAMS
- Visit the Aadhaar – MF linking portal of CAMS at
https://adl.camsonline.com/InvestorServices/COL_AadhaarMain.aspx - Select the investor type – Individual, HUF or non-individual
- Enter your 10-digit PAN and submit
- Enter Aadhaar details such as your Aadhaar number, name, DOB, gender, mobile number, etc.
- Select the mutual fund accounts you want to link with Aadhaar
- Now click on “Generate OTP” to send the OTP to the mobile number registered with Aadhaar
- Enter the OTP and submit your request
- You will get a confirmation message when your Aadhaar is seeded with your mutual fund account
Linking Aadhaar with Mutual Funds through Karvy
- Visit the Aadhaar – MF linking portal of Karvy at https://www.karvymfs.com/karvy/Aadhaarlinking.aspx
- Select the type of investor – Individual, Non-individual, clients, etc.
- Tick the disclaimer and provide your consent for Aadhaar linking
- Enter your PAN to generate the OTP
- An OTP will be generated and sent to the mobile number registered with the mutual fund
- Enter the OTP in the space provided and submit your request
- Tick all the Mutual Fund accounts you want to link with Aadhaar
- Click on the consent box to allow it to initiate the Aadhaar linking process
- Enter your Aadhaar number and submit your request
- You will get a confirmation message on successful Aadhaar seeding
How to Link Mutual Funds with Aadhaar Offline
People who are not efficient in managing their funds online can opt for the offline method to link Aadhaar with mutual fund accounts. They can follow these simple steps for this purpose:
- Download the Aadhaar seeding form from your AMC’s (Asset Management Company) website. You can also get this form in the local office of the company.
- Fill the form diligently and avoid making any corrections as it may lead to the rejection of your form.
- Attach a self-attested copy of your Aadhaar with the form and submit it to the executive
- The fund manager will verify your details with UIDAI and link your Aadhaar with the mutual fund account
- A confirmation message will be sent to your mobile number on successful linking
How to link Aadhaar with Mutual Funds through SMS
Karvy allows its investors to link their mutual funds with Aadhaar through SMS as well. However, to avail this facility, the mobile number should already be registered with the mutual fund and in Karvy’s database.
The investor has to send an SMS in the format ADRLNK <space> <PAN> <space> <AADHAAR NUMBER> <space><Y> to 9212993399 from the mobile number registered with Karvy. Y in the message gives consent to Karvy to authenticate your Aadhaar details and link Aadhaar on your behalf.
How to Check Aadhaar–MF Linking Status Online
Investors can check their Aadhaar-MF linking status online for both CAMS and Karvy. They have to visit the Aadhaar-MF linking portal of their fund managers – CAMS or Karvy. They then have to enter PAN after which all mutual fund accounts associated with it will be displayed on the screen. The status of Aadhaar linking will be shown to the user.
Implications of Non-Linking of Aadhaar with Mutual Funds
Mutual fund companies have to submit Aadhaar of new investors at the time of opening the new account as per the guidelines issued by AMFI to fund managers and AMCs. Existing users have to link their Aadhaar with the MF accounts before the end of the deadline post which accounts not linked with Aadhaar will be rendered inoperative. Investors will have to submit Aadhaar to activate the account eventually. It is thus recommended you get your mutual fund linked beforehand to stay away from hassles.
Final Word
The government, in its initiative to streamline the financial processes and prevent the generation of black money, is taking various steps. Mutual fund–Aadhaar linking is one such initiative that will allow the government to find out defaulters who evade taxes and generate black money which eventually causes dents in the financial health of the country. AMFI has made it mandatory for investors to provide Aadhaar at the time of opening a new account. Existing investors have to get their accounts linked with Aadhaar before the end of the deadline to prevent deactivation of the account. So it is best recommended to get your Aadhaar seeded with your mutual fund account as early as possible. You can follow any process to link your Aadhaar and also can find out accounts that are not linked with Aadhaar.
