Mutual fund investment has become popular today. Many people, including the youth, are showing interest in monthly investments called SIPs in equity and credit market-based mutual funds. Investment advisors suggest that it will be more profitable for long-term investors. When the stock market is going through a major downturn, putting a lump sum in a mutual fund and holding it for a long period of time will give you a profit.
Mutual fund investments also come under the supervision of SEBI (Securities Exchange Board of India). SEBI has directed the KYC registration agencies to verify the KYCs of mutual fund investors, including equity and debt market investors, by May 1, 2023.
SEBI has directed KYC and registration agencies to generate an ID for investors who have successfully completed such verification. With this ID, investors do not need to go through the KYC process again when starting new investments.
According to this, those who have invested before November 1, 2022 and have provided Aadhaar as KYC, will have to submit e-Aadhaar before April 30, 2023. Aadhaar XML, or Virtual ID (VID) can also be downloaded and submitted. The downloaded Aadhaar should have QR code corresponding to scanning. Those who do not revalidate cannot make any transactions on their investments.