Basic Requirements to Start Investing in Mutual Funds

Investing in mutual funds is one of the best ways to grow your wealth over time. Whether you are a beginner or an experienced investor, having the right documents and accounts in place is essential to ensure a smooth investment journey. Here’s what you need to get started:

1. PAN Card (Permanent Account Number)

A PAN Card is a unique 10-digit alphanumeric identification number issued by the Income Tax Department of India. It is mandatory for financial transactions, including mutual fund investments, opening a bank account, and filing taxes. Without a PAN, you cannot invest in mutual funds.

How to Apply for a PAN Card?

Visit the nearest PAN service center (UTIITSL or NSDL) or Akshaya Kendra to apply for a new PAN card.
Alternatively, visit the NSDL or UTIITSL website to apply online.
You will need Aadhaar, a passport-size photo, and a signature.
After submitting the application, you will receive your e-PAN via email in a few days and a physical PAN card by post.

2. Aadhaar Card

An Aadhaar Card is a 12-digit unique identification number issued by the UIDAI (Unique Identification Authority of India). It serves as proof of identity and address and is widely used for KYC verification and financial transactions.

How to Apply for an Aadhaar Card?

Most individuals already have an Aadhaar Card. However, if you do not have one, you can apply for it free of cost.

Visit your nearest Akshaya Kendra or Aadhaar Enrollment Center.
Provide identity proof (Passport, Voter ID, etc.) and biometric details.
Once processed, your Aadhaar number will be issued.

🔹 Tip: If your Aadhaar is linked to your mobile number, you can complete e-KYC using OTP-based verification, making it easy to start investing instantly.

3. Bank Account – For Investment Transactions

Mutual fund investments require a registered bank account for transactions. Your investment and redemption amounts will be credited and debited from this account. A bank account also helps in setting up SIP (Systematic Investment Plans) for automated investments.

Types of Bank Accounts for Mutual Funds

For Resident Indians: A regular savings or current account is sufficient.

For NRIs: Choose between NRE or NRO account based on repatriability.

NRE Account is for full repatriation of investment & profits. NRO Account is for investing Indian-earned income, with limited repatriability.

How to Open a Bank Account?

To Open a Bank Account:

Visit the nearest bank branch with original documents.
Fill out the account opening form.
Submit identity proof (Aadhaar, PAN), address proof, and a passport-size photo.
Provide an initial deposit if required.
Receive your debit card, checkbook, and net banking details.

4. Mobile Number & Email ID

Your mobile number and email ID are crucial for secure and seamless investment transactions.

Used for receiving transaction alerts, SIP reminders, and mutual fund statements.
Required for OTP verification in e-KYC (Aadhaar-based verification).
enables secure login and portfolio tracking on investment platforms.

🔹 Tip: If your mobile number is not linked with Aadhaar, visit your nearest Akshaya Kendra or Aadhaar Enrollment Centre to update it.