Filling your Mutual Fund Application - watchout for these

Today i received a email from Quantum Mutual Fund , with four points to look out for when filling your Mutual Fund Application either for SIP or Lump sum investment . I have added a few more to those four

• Cheque in favour of the Scheme Name

The cheque that you issue must always be in the name of the fund that you are investing in . For example in case you are investing in HDFC Top 200 Fund , then cheque must be drawn in favour of "HDFC Top 200 Fund" and not in favour of HDFC Mutual fund .

• Wrongly dated Cheque

This pertains to SIP cheques , Make sure the First cheque that you submit withe application is dated , atleast on the day of submissin of the application , as the Cheque be send for collection on the day of submission

Example : In case you are submitting an application on 10th of a month for a SIP to start from 15th of each month , Please make sure the date on the cheque is 10th or pre dated to 10th , as MF will send it for collection on the very same day and not on 15th and actually SIP would start at least a month from date of submission of application not before that .

• Wrong SIP start date

SIPs usually start atleast a month from date of submission , never before that , so make sure your SIP start date is a month away and not before that .

• No Third Party Cheques

If you are investing in the name of your spouse make sure you are attaching a cheque from your spouse's account . That is, person in whose name the mutual fund is bought and person who is issuing the cheque must be same .

This is new regulation being bought in to prevent MF agents from misuse client cheques. To buy units in their own name.Watch out for a detailed post on this !!!!

• Fill in your Email Id

Have a email Id and make sure that you use the same email Id for all the MF investments , as you can later use this to get a consolidate statement across MFs from camsonline.com

• Fill in Nomination Details

Always have nominee for your MF folio

• KYC compliant

If possible be KYC compliant , this may not seem as necessary when you start investing , but down the line in case you wish to make a lump sum investment of more than Rs.50,000/- you will not be allowed to do so , unless you are KYC compliant.