Definition of KYC (Know Your Customer)
KYC (Know Your Customer) is a mandatory verification process required by SEBI and RBI before you can invest in mutual funds, open a demat account, or access most financial services in India. It involves verifying your identity (PAN card), address proof (Aadhaar, utility bill, bank statement), and other personal details.
In India, KYC for mutual fund investing is centralized through CKYC (Central KYC) — once done, your KYC details are shared across all financial institutions, so you don't need to redo it for each fund house or broker. KYC can be done online (eKYC via Aadhaar-based video verification) or offline at CAMS/Karvy service centers or AMC offices.
Your PAN card is mandatory for mutual fund investments above ₹50,000 per year and for all demat account openings. Non-residents (NRIs) can also invest in Indian mutual funds with NRE/NRO accounts after completing KYC, with some fund houses restricting investments from certain countries due to FATCA compliance requirements.