MF Statement

When you start investing in Mutual Funds ( MFs) you are suppose to receive a Mutual Fund statement every quarter , especially , if you are investing through SIP.

Watch out for these details on your MF statement

Scheme Name and Option :
Make sure your money is being invested in the correct Mutual Fund scheme of your choice and also make sure the Option of the scheme which could be Growth, Dividend - Payout , Dividend - Reinvest , is as per your choice

Name and Address :
Make sure your Name is spelt right and also check your contact address ( Postal Address in case you received the statement by Email and Email address, in case you are getting your statement by Post ).

Email  Address and Mobile Number:
Make sure your email address is proper as, then you can get a statement from CamsOnline.com ,anytime you like using your registered email Id. Check you mobile number too , so that you can be sent SMS alerts by the MF when your SIP is due and when a purchase has been made

KYC Status :
Make sure your KYC status is OK/Validated on your statement .if your are not KYC compliant , you will not be allowed to make any new investments nor will you be allowed to sell your current holdings

Bank Details :
Make sure proper Bank Account details are mentioned , along with the IFSC code ,
If IFSC code is mentioned then MF can directly credit the dividends as well as redemption money into your bank account saving you time and effort of depositing cheques into your bank account and also avoid getting into the agony of losing/misplacing cheques.

SIP Amount/Lumpsum Amount:
Make sure the amount that has been invested is correct .

Broker Details:
If you were helped by a broker to invest , you would then see the Broker's name here, else you are suppose to see "Direct". This must not affect your investment directly , but brokers are usually paid a trail commission by the Mutual Funds , which is paid from charges deducted from you . So, in case you have invested directly/Online without any broker's help make sure it is "Direct"

Image: renjith krishnan / FreeDigitalPhotos.net

Random Thoughts

KYC :

Three of my friends who wanted to invest in Mutual Funds , found that they cannot invest , because they are not KYC compliant . Since Jan 01 ,2011 , being KYC complaint is mandatory

KYC , is Know Your Customer guidelines for Mutual Funds to know who their customers are and to make sure that no ill gotten money is being invested in MFs

So,even if you have no plans of investing in MFs in near future , Please make sure you get your KYC compliance letter ready , so that you would not have to run around when you really need it .

You would need this letter to make fresh investments in MFs and also to sell/redeem your old investments in MFs

How to get your compliance letter , click here

Online Investing :

Most of the Mutual Funds , now provide an Online option for investing , If you are an existing investor in a mutual fund , all that you would need to do , is to fill their Online Investment authorisation form and post it to them and the MF would mail you back the Online PIN , which can be used to transact Online

So in case you have not yet enabled online transaction for your MF Folio number, go ahead and do that , Investing becomes so much simpler when you can invest online .

Life is about seizing opportunities and you can seize opportunities only if you are prepared