Mutual Fund Eligibility Criteria
To invest in Mutual Funds, you must be one of the following:
- Indian residents above the age of 18, either individually or jointly
- Parents or lawful guardians on behalf of minors
- Companies (including public sector undertakings), corporate bodies, trusts (through trustees) and
- Non-resident Indians (NRIs) and Persons of Indian Origin (PIOs) residing abroad, on a full
- Hindu Undivided Families (HUFs) in the name of HUF or Karta
- Banks (including regional rural banks) and financial institutions
- Religious and charitable trusts (through trustees), and private trusts authorized to invest in
Mutual Fund schemes under their trust deeds
- Foreign institutional investors registered with SEBI on the basis of repatriation
- International multilateral agencies approved by the Government of India
- Army/navy/air force/paramilitary units and other eligible institutions
- Unincorporated bodies of persons as specified by asset management companies
- Partnership firms
- Scientific and industrial research organisations
- Trustees, AMCs, sponsors, or their associates
- Other individuals/institutions/corporate bodies, as approved by asset management companies, so long
as they conform to SEBI regulations
- Qualified Foreign Investors (QFIs)
Investment trusts are professionally managed investment funds that combine money from many investors to
purchase securities. These investors may be types of retail or institutional investors. Investment
trusts have advantages and disadvantages compared to direct investment in individual securities.
- Application form: You may need to fill in more than 1 application form to get a mutual fund.
- KYC Compliance: Your PAN has to be verified by under the Know Your Customer (KYC) norms of the
Government of India to be able to invest in mutual funds.
- Proof of identity: Any of the following documents are acceptable as proof of identity.
- Proof of address: Any of the following documents can be submitted as proof of identity.
- Cheque for SIP or lump sum amount, as per your choice.
- Third party declaration for minors: If the investor is a minor, parents are allowed to invest on
behalf of them.
Once you have created the necessary documents, you are ready to open the mutual fund account and choose
a fund that fits your risk and monetary objectives.
GST rate of 18% applicable for all financial services effective July 1, 2017.