If you wish to invest in mutual funds, you may now require to furnish a new number, called Mutual Fund Identification Number or MIN. Outlook Money gives you a definitive guide on how to get your MIN.
Why do we require a min?
Money laundering is a serious evil concerning many countries today. It means converting money earned through illegal ways into legal money by passing it through various banking channels.
This makes it difficult for authorities to track the 'dirty money' to their illegal origins. After the passage of the Prevention of Money Laundering Act in 2005 to curb this menace, the Reserve Bank of India and the Securities and Exchange Board of India have made it mandatory for various banks and intermediaries like MFs to get to know their customers better by verifying details concerning identity and address. They are called Know-Your-Customer norms.
Is MIN compulsory?
No. But the Indian MF industry has come together to simplify this process by processing your details, only once, and to generate a MIN that you can use subsequently for all your MF investments across fund houses. Legally speaking, MIN is not mandatory, but implementation of KYC norms is. So, you may choose to avoid procuring a MIN and instead opt to submit the mandated documents every time you invest in an MF.
You can quote your MIN for investments of Rs 50,000 or beyond in a single MF scheme. MIN is not required for investments below Rs 50,000. However, sources say this threshold might come down someday to cover all investments. It is, therefore, in your best interest to get a MIN.
If you have been investing in a Systematic Investment Plan and if each of your instalments is Rs 50,000 or more, then you may get your MIN, even though your SIP may have started before 1 January 2006. Dividends reinvested or inter-scheme transfers do not require a MIN, even though they are above Rs 50,000.
Where to get it?
The Association of Mutual Funds of India has appointed 37 centres called Point of Services across India (refer www.amfiindia.com). Take all your documents there along with your MIN form (download from www.amfiindia.com) and get your MIN across the counter.
Your details will then be forwarded to an industry-appointed centralised agency that will again verify your documents. If this agency finds any discrepancies, it will send a letter to you within 21 days, cancelling your MIN. If you do not hear anything within 21 days, assume your MIN is valid.
If your city does not have a POS, ask your distributor to assist you. Else, call up the MF house you have invested in.
Documents required?
You need a PAN card, proof of identity (PAN would also do, or other photo-identity card), and, proof of address (electricity bill, telephone bill, or passport). Attest your photograph with a white background on the MIN form and then sign across it.
For a detailed set of options, refer to the back of the MIN form. Take your original as well as photocopied documents to POS. If you are unable to send your originals, then photocopies must be attested by a notary.
What is the cost?
It is free of cost.
Do all holders in the folio need a min?
Yes, even if the primary holder is the beneficiary. Also, if you inherit MF units, you many acquire a MIN if the inherited investment value is Rs 50,000 or more.
