eKYC vs KYC in Mutual Funds: What Every Investor Must Know in 2026

KYC stands for “Know Your Customer.” It is a compulsory verification process that needs to be completed before you can start investing in mutual funds.

This process helps verify your address and identity. It is regulated by SEBI and is meant to:

• Prevent fraud and misuse of financial systems

• Ensure transparency in transactions

• Maintain a standardised investor database

Once your mutual fund KYC is completed, you can invest across different mutual fund schemes without repeating the process.

To become eligible for investing in different types of mutual funds, you have to complete your mutual fund KYC. Here are a few key details you should know about mutual fund KYC procedures:
 

1. Physical to Digital KYC

Earlier, mutual fund KYC was limited to the physical mode, where mutual fund investors had to fill out physical forms and submit physical document copies to have their KYC completed. Today, online MF KYC has made things easier. 

In the digital age, there are three key mutual fund KYC types:

• e-KYC: This is an Aadhaar-based e-KYC in mutual funds that allows instant online verification using Aadhaar and OTP

• Video KYC: Enables completion of IPV (in-person verification) through a video interaction

• Centralised KYC (CKYC): Once registered, your KYC details are stored in a central database and can be reused across institutions

2. Documents Needed

You need to submit a few Officially Valid Documents (OVDs) to complete your mutual fund KYC online and start investing in SIPs or mutual funds. The list of accepted documents is as follows: 

• PAN Card

• Proof of Identity: Aadhaar Card, passport, voter ID, or any government-issued ID proof document

• Proof of Address: Aadhaar Card, passport, utility bill, bank statement, or property tax receipt

3. Process

The mutual fund KYC process has become much simpler over time. It involves the following steps:

• Document submission: You provide identity and address proof

• Verification: This includes IPV, which can now be completed through video KYC or Aadhaar-based authentication (offline option is still available)

• Activation: Once verified, your KYC status is updated, and you can start investing in mutual funds.

4. Mutual Fund KYC Status

It is also important to understand the different mutual fund KYC status updates:

• KYC Validated: Investors who complete KYC using Aadhaar-based verification (like DigiLocker or Aadhaar QR) fall in this category.

  • No restrictions on investing

  • Can invest, redeem, and switch across all mutual funds

  • Fully compliant and ready for all transactions
     

• KYC Registered: Investors who complete KYC using documents like their passport, voter ID, or driving licence (without Aadhaar) fall here.

  • Can transact in existing mutual funds

  • Cannot invest in new schemes

  • Need Aadhaar-based update to move to validated status
     

• KYC on Hold: Investors with incomplete KYC or missing Aadhaar-PAN linkage fall under this category.

  • Cannot make new investments

  • Redemption may be allowed with checks

  • Must complete KYC to activate the account again 

e-KYC or online MF KYC is a fully digital process that allows you to complete your KYC using your Aadhaar details, typically through OTP-based authentication.

You’ll need to fill in basic details, upload documents like address proof, and complete required declarations. This can be done on AMC websites or platforms like CDSL and NSDL, so you don’t need to visit anywhere physically. 

Here are some key points mutual fund investors should note about the e-KYC process:

1. How to Complete e-KYC Online

You can complete e-KYC through mutual fund websites, RTAs, or distributor platforms. The process is simple and usually involves these steps:

• Visit an AMC, RTA (like CAMS/KFinTech), or distributor website
• Enter your PAN and basic details like name and date of birth
• Upload documents such as PAN, address proof, and a photograph
• Keep scanned copies ready for quick upload
• Complete verification through a short video KYC (IPV)
• Once verified, your KYC is activated and you can start investin

2. There Are No Investment Limits on e-KYC

As per CAMS latest update, if e-KYC is completed with proper verification (such as video KYC/IPV), it is treated as full KYC. This means:

• No restriction on investment amount
• You can invest across different mutual fund schemes

3. e-KYC Cannot Be Used by Minors and NRIs

e-KYC is generally available only for resident individual investors. This means:

• Minors typically require a different KYC process through guardians
• NRIs may need additional documentation and cannot rely on standard e-KYC
• Separate compliance requirements apply in such cases

KYC is mandatory for anyone who wants to invest in different kinds of mutual funds. So, as an investor, understanding the difference between general KYC in mutual funds and e-KYC is essential. Here’s a simple comparison to make things clearer:

KYC is the first step before you start investing in mutual funds. It helps verify your identity and allows you to access different investment options smoothly. Today, online mutual fund KYC has made things easier by:

• Digitising the entire process

• Enabling video verification

• Avoiding physical paperwork hassles

So if you wish to invest in SIPs, completing your mutual fund KYC online can help simplify the process. You no longer have to wait in long queues at the AMC office to submit your documents. Instead, you can complete this compliance requirement from the comfort of your home and start investing in mutual funds at the earliest.

Is KYC mandatory to invest in mutual funds?

Yes, KYC is mandatory before you start investing in different types of mutual funds in India. It is mandated by SEBI and is a one-time process that verifies your identity and address for security and compliance purposes.
 

Do I need to provide PAN details for completing MF KYC online?

Yes. Your PAN Card is a mandatory document needed for completing the MF KYC online. PAN is important because it records all your mutual fund investments and transactions under one permanent account number, making it easy to track for tax purposes.
 

Why is KYC important for investing in investment funds?

Completing mutual fund KYC is important for the following reasons:

• Prevention of fraud, as KYC verifies your identity and reduces the risk of money laundering and theft.

• Keeps your investments safe by protecting your accounts from unauthorised access and misuse.

• Ensures compliance with SEBI’s rules.
   

What is the process of checking mutual fund KYC status online?

Checking your mutual fund KYC status online is simple. You can do it through the KRA website or through the AMC platform you had applied through.

• An Investor Education and Awareness Initiative by Tata Mutual Fund. 

• To know more about KYC documentation requirements and procedure for change of address, phone number, bank details, etc., please visit: https://www.tatamutualfund.com/deshkarenivesh

• Please deal only with registered Mutual Funds, details of which can be verified on the SEBI website under ‘Intermediaries / Market infrastructure institutions.’

• All complaints regarding Tata Mutual Fund may be directed to service@tataamc.com and/or https://scores.sebi.gov.in/ (SEBI SCORES portal) and/or https://smartodr.in/login

• Nomination is advisable for all folios opened by an individual, especially with sole holding, as it facilitates an easy transmission process. 

• This communication is a part of the investor education and awareness initiative of Tata Mutual Fund.