SIP & Transaction Queries
Can I cancel my SIP directly with the AMC (Mutual Fund House)?
Only if the SIP was registered directly with the AMC (through their website or via physical application with the cheque). If the SIP was set up via a channel partner (like NSE NMF II, BSE Star MF) or apps (like Zerodha Coin, Groww, Paytm Money), you must cancel it from the same platform where it was created.
Will money still get debited from my bank after I cancel the SIP?
It depends on how the SIP was set up:
- Platform-based SIP (NSE/BSE): Cancellation at the platform stops further debits.
- Bank-mandate based SIP (via NACH/ECS): You may also need to revoke the mandate to ensure future debits are stopped.
What if I don’t remember how I started the SIP?
You can check your CAS (Consolidated Account Statement) which often mentions the source, contact the AMC or RTA (like CAMS or KFintech), or check your email or SMS confirmations from when the SIP was registered.
What happens to SIP/STP/SWP after the death of the investor?
All SIP/STP/SWP instructions are cancelled upon the death of the investor. The nominee or legal heir may start a fresh SIP/STP/SWP after transmission.
Do I need to stop my SIP while a loan against mutual funds is active?
Not necessarily. You can continue your SIP. However, any new units purchased via SIP won't be automatically pledged. If NAV drops, you might still get a margin call.
Can close ended schemes be re-activated?
No, once the close ended schemes are matured, the scheme becomes extinguished. It cannot be reactivated. In case AMC decides to extend the period, they will give an option to all investors subject to consent.
Change of name of the scheme – What will be the impact?
This is only a nomenclature change to align with SEBI rules. There will be no change in NAV, folio number, taxation, or exit load. Only the scheme name changes; strategy stays as disclosed earlier.
Impact when there is Merger of two schemes.
In case of merger of the scheme, NAV will be changed and accordingly number of units will also change in the folio.
KYC, PAN & Personal Details
My client is an NRI. They have a rent agreement as proof of their overseas address, but it is not in English. Will mutual fund companies accept this?
No. Indian RTAs (CAMS/KFinTech) require all supporting documents to be in English for verification. It is suggested to translate the agreement into English.
What complications arise if multiple email IDs are linked to a single PAN?
- Tracking Issues: CAS and updates may go to different emails.
- KYC Issues: Inconsistent emails may put KYC 'on hold'.
- Communication Confusion: Investors could miss critical updates.
What happens if the given email ID/mobile number is registered with two PANs with self-declaration?
The transaction will get rejected. Two PANs cannot have the same email/mobile with the same relationship declaration. You must declare the correct relationship (e.g., Spouse, Child) for the email/mobile registered in the folio.
What are the types of KYC Status?
- Verified: Can invest in any AMCs.
- On Hold/Rejected: Resubmit documents via KYC modification.
- Under Process: Wait until approval.
How do I update my Name (after marriage), Address, email ID or phone number in KYC records?
You need to re-submit the KYC via online or offline mode.
What if I have already done KYC with a bank or for another financial product?
You may still need to do KYC via a SEBI-registered KRA for mutual fund investments. Bank KYC is not always accepted unless it is CKYC.
What complications arise if multiple email IDs are linked to a single PAN?
Similar to Difficulty in tracking investments, potential KYC 'on hold' status, and missed communications.
Which tax status changes are acceptable as per the rules?
- RI → NRE: ❌ Not acceptable
- NRO → NRE: ❌ Not acceptable
- RI → NRO: ✅ Acceptable
- NRE → NRO: ✅ Acceptable
- NRE → RI: ✅ Acceptable
- NRO → RI: ✅ Acceptable
What are the guidelines for submitting KYC documents?
All KYC documents must be clear and complete. Blurry, cropped, or partially visible documents will be rejected. Ensure all text and photos are fully visible.
If I have two numbers, can I give different ones to different AMCs?
Ideally, one should opt for KYC linked details. However, you can give different numbers if you provide a different relationship declaration (since each investor can map only one mobile number as 'SELF').
Can a third party’s mobile number or email address be used for registration?
Yes, but you have to provide the relationship declaration mentioning the owner of that number/email ID (other than SELF).
How can a mutual fund investor update their signature?
Submit a KYC and AMC signature modification request along with a Signature Verification Letter (attested by the bank) and self-attested identity proof.
NRI doesn't have PAN; can he invest in Mutual funds?
No. PAN is mandatory for all mutual fund investments in India.
How can we change the PAN number in the folio or KYC?
Normally not allowed. However, if a duplicate PAN was issued, the active PAN can be updated with an Income Tax Dept letter. For KYC, a new KYC must be processed with the new PAN.
Banking, Redemptions & Unclaimed Amounts
What is an “unclaimed amount” in mutual funds?
Unclaimed amounts are redemption proceeds or dividends that could not be paid to investors due to incorrect bank details, outdated contact information, or failure to encash cheques/DDs.
How can I check if I have any unclaimed amount?
By visiting AMC/Registrar (CAMS, KFintech) websites or using NSDL/CDSL Consolidated Account Statement (CAS).
How do I claim my unclaimed redemption/dividend?
By submitting a written request to AMC/RTA along with KYC documents, cancelled cheque/updated bank details, and any additional documents asked by the AMC.
Can I change my bank account during a redemption request?
No. Most AMCs do not allow simultaneous bank change and redemption. You must first successfully change the bank account, then place a redemption request.
Can I register multiple bank accounts in my mutual fund folio?
Yes, up to 5 accounts. One account will be marked as the default for all payouts.
What if my old bank account is closed?
Provide a letter from the bank confirming account closure and submit a cancelled cheque or proof of the new bank account. Additional verification may be required.
Can I update contact details during a transaction (like redemption or SIP)?
You should update contact details before initiating important transactions to avoid OTP delivery failure and mismatch errors.
Can mutual funds units be redeemed immediately after changing my bank details?
No. There is a cooling period of about 10 days post bank change before redemption is allowed, for security purposes.
What can be done if a cheque used for investment does not have the investor’s name printed?
Provide a passbook or bank statement with relevant details (Name, account number, MICR, IFSC) matching the cheque to verify the account.
What happens on bank merger?
Bank details may get updated automatically if received from the registrar. However, it is advisable to submit a change of bank details request with old and new bank proof to update IFSC/MICR.
If the first applicant is the joint holder in the bank, can he still invest?
Yes, AMC allows investments if the first holder’s name appears anywhere in the bank account (either primary or joint).
How do we change Bank branch if the IFSC changes?
Submit a filled and signed change of bank mandate along with a cancelled cheque of the new and old bank account with the name pre-printed.
Nomination, Transmission & Joint Holders
How can I add or change a nominee in my mutual fund folio?
Online: Through AMC or RTA (CAMS/KFintech) portal using PAN + OTP.
Offline: Submit Form 3 to the AMC/RTA signed by all holders.
Can I nominate more than one person?
Yes, up to 3 individuals, specifying the percentage share for each.
I am a joint holder. Can I change the nominee without others signing?
No. All holders must sign the nomination change form.
Is KYC mandatory for transmission?
Yes, the claimant/nominee/surviving holder must be KYC compliant before transmission.
Can units be transmitted to multiple nominees/legal heirs?
Yes, in the proportion mentioned at the time of nomination.
Can I revoke the Power of Attorney (POA) later?
Yes, by submitting a written request to the AMC/RTA with a copy of the original POA, clearly stating the revocation.
What happens to the POA if the investor passes away?
The POA automatically becomes invalid. Only legal heirs or nominees can claim the investment.
What if the client is unable to provide the original death certificate?
The client may submit a notarized and self-attested copy of the death certificate as a valid alternative.
If the Unit Holder and the nominee die on the same day, who will be the claimant?
It will be considered as a "NO Nominee" case, and transmission will be processed in favor of the legal heir.
Can transmission be challenged by legal heir?
Yes, in a court of law. The transmission will be "Put on Hold" until a court order/succession certificate is provided.
If scheme is locked (ELSS/close ended) - does lock-in continue post transmission?
For ELSS, the lock-in reduces to 1 year from the date of purchase. For close-ended schemes, units remain locked until maturity.
Does a nominee need to be a relative only?
No. A relative or a friend can also be a nominee.
Is it possible to add or delete a joint holder from the mutual fund folio?
Yes, it can be done at the folio level through CAMS or KFintech. It requires KYC documents and OTP verification from both applicants.
What happens when MF folio is assigned to someone?
The assignee becomes the new unit holder with full rights. The original holder’s rights end once the transfer is completed.
If the company/HUF/Firm is dissolved, what will happen to investments?
Investments will be transmitted to the Ultimate Beneficial Owner (UBO) based on shareholding. UBOs must submit KYC and dissolution documents to transfer units to their individual names.
Broker & Distributor Changes
Can I switch from a regular plan to a direct plan to remove broker commission?
Yes, via a switch transaction. This is treated as redemption + new investment and may trigger capital gains tax.
Will changing the broker affect my existing investments?
No. It does not affect existing units; it only impacts trail commission on future investments.
What happens to my SIPs if I change my broker?
If switching to a new distributor, future SIPs can be routed via them. If switching to Direct, you must cancel the existing SIP and register a new one.
Will I lose access to my account if I move to a direct plan or change broker?
No. Investments stay safe with the AMC. You can continue to access folios via AMC/RTA portals.
Is there a cost or penalty for changing brokers or switching to direct plans?
No cost for changing brokers. No entry load. However, exit load and capital gains tax may apply for switches.
Can non-individual investors (e.g., companies, trusts) change brokers?
Yes, but they must submit a Broker Change Request on letterhead, Authorized Signatory List (ASL), and Board Resolution (if required).
How can I resolve a signature mismatch when changing my broker?
Submit a bank-attested signature proof (Annexure 1A) or re-submit the application with the correct signature.
Can I request a broker change for multiple folios in one application?
Some AMCs allow consolidated requests. Ensure signatures and details for each folio are correctly provided.
Loans & Locked Folios
How much loan can I get against my Mutual funds?
Equity Funds: 50–60% of NAV. Debt Funds: 70–80% of NAV.
Can I redeem the mutual funds while the loan is active?
No. You can’t redeem until the loan is closed and the pledge is removed.
What if the mutual fund NAV drops significantly?
The lender may ask for additional units (top-up margin) or partial repayment to maintain the Loan-to-Value (LTV) ratio.
Can I prepay the loan early?
Yes. Most lenders allow prepayment or foreclosure without major penalties.
Why can a mutual fund folio get locked?
Due to legal disputes, written requests by holders, or if KYC status is on hold.
What happens when a folio is locked?
All transactions (purchase, redemption, switch, SIP) are restricted.
How can a locked folio be unlocked?
By resolving the reason: submit a court order for disputes, a written request for voluntary locks, or required compliance documents.