The Common Account Number (CAN) is a reference number that is issued to mutual fund investors by MFU or the mutual funds utility platform. This platform is an important tool for investors as it helps in facilitating and consolidating investor holdings across separate fund houses into a cohesive statement. The MFU also helps in facilitating transactions in multiple schemes via a common transaction form.
To obtain a CAN, it is important that an investor finish the KYC process which is a one-time activity.
What is the process for KYC Registration for CAN?
Here are the steps for performing KYC for the purpose of obtaining a KYC:
- Investors should download the KYC form an AMC’s website, or from a transfer agent’s website. They can also visit the ‘Downloads’ section of the CDSL website.
- Now, print out of the KYC application form for the individual application (for a fresh KYC).
- Fill the form and provide self-attested copies of the following documents:
- Proof of identity
- Proof of Address
- PAN Card
- Self-attest the form and send it to the AMC with which you wish to invest or a Registered Transfer Agent. Please know that there are no fees for KYC registration.
Why should one create a Common Account Number?
The MF Utilities (MFU) portal has made it possible for all those investing in mutual funds to track and manage their investments via a single platform. Once you have created a Common Account Number, the MFU will map your existing investment folios – across the sea of mutual funds you’ve invested in – to your CAN. This mapping will be based on your PAN details and will take into account your holding pattern and other parameters.
The benefits of migrating to a single portal using the CAN are multifold. For instance:
- The Common Account Number (CAN) will act as a single reference point for all the mutual fund investments and reduce ambiguity
- The MFU will act as a Neutral Point of Service (POS) irrespective of the transfer agent servicing the Mutual Fund
- Investors will have access to a Common Transaction Form which can be used to transact in multiple schemes at a time, across mutual fund types
- The portal will also provide a single payment facility for investments with the help of a single, consolidated form
- Investors will have the option to choose from multiple modes of payments including both physical and electronic mediums
- Investors can have a consolidated view of their investments across the industry using their CAN details
- Investors will also receive alerts, triggers, reminders etc. for their transactions, and important deadlines like SIP expiry etc.
- For any queries, the MFU will act as a centralized complaint management and tracking system to log in complaints across the industry