Aadhaar mandatory for mutual fund investments from January 1, 2018: AMFI

In line with the Ministry of Finance rules on prevention of money laundering, Aadhaar has been made mandatory for mutual fund investments with effect from January 1, 2018.

In an email communication, AMFI has said that no new folios can be opened from January 1, 2018 if Aadhaar is not provided at the time of making an investment in mutual funds.

AMFI has also directed fund houses to ensure linking of Aadhaar details with existing folios before December 31, 2017. AMFI has asked fund houses to freeze non-Aadhaar compliant accounts with effect from January 2018. This means, non-Aadhaar compliant investors cannot execute fresh mutual fund transactions.

Though fund houses can allow investors to invest in mutual funds without furnishing Aadhaar details at their discretion, they will have to update such details before December 31, 2017.

Earlier, the ministry had directed fund houses to link Aadhaar number with the mutual fund folios before December 31, 2017.

Investors can link their Aadhaar number with mutual fund folios through R&T agents such as CAMS and Karvy.

Over 66 lakh new investors added in mutual funds in Apr-Sep

Showing a growing traction for mutual funds among investors, the number of folios has grown by over 66 lakh in the first six months of the current fiscal on account of strong participation from retail investors.

According to data from the Securities and Exchange Board of India (Sebi) on total investor accounts with 42 active fund houses, the number of folios rose to a record 62,049,189 at the end of September, from 55,399,631 in March-end, a gain of 6.65 million or 66.5 lakh.

Mutual funds pump $12 billion in equities

Investment by mutual funds in domestic equities touched a staggering $12 billion in the April-September period on strong retail investor interest, even as foreign investors trimmed their exposure.

Moreover, fund houses are upbeat over investment in the stock markets for the remainder of the current fiscal.

According to the latest data, fund managers bought shares worth a net Rs. 76,906 crore ($12 billion) in the first half of the ongoing financial year, while foreign portfolio investor (FPIs) pumped in just Rs. 5,278 crore ($810 million) in equities during the period.

Source: Café Mutual, PTI, AMFI

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