For an individual, while going for his banking or investment requirements, it is necessary to have the KYC done. The Know, your customer, is known as KYC which means that the documents of the customers are submitted in an order that can establish his identity and the system can believe that he is the same customer who is availing the service. As per the government norms, there are various documents that the customer needs to submit at the time of hiring these services. The documents here include Identity proof and address proof and banking proof in some cases.
The process:
The ckyc online is for a centralized process of KYC done by different agencies. There are provisions where the data of each client is maintained at a place which can be accessed by authorized people only. To establish firm trust and avoid any money laundering, these norms are set by the government. The process of documentation can be done with the help of a bank or security company. Once the documents are provided, the customer is said as KYC compliant, and hence, the system believes that it is safe to transact with such a customer.
The mutual fund:
In the money market, a mutual fund is considered as one of the safest and best options for every individual. It has got a system that is much transparent, and one can get a good return on his investments even if it is for the medium term. The investor can go with an investment of 500 per month or 1000 in one shot. To invest in a mutual fund, one can go for options such as offline and online.
How does mutual fund work?
The system of work of a mutual fund is very simple. The amount invested in any schemes of any company is collected by the concerned company and invested in various shares in the share market. To monitor and safeguard the investment in the market, there are specific professionals deployed which are known as a fund manager. They are experienced and learned who can handle the investment in a professional way. The investor can check various schemes offered by the company with their past performance and see if the same can fit his criteria. There are ample funds with different options which can help the investors to fulfil their short and long term goals. The investment in this fund needs to be managed for at least 3 years to have better returns.
The options:
Investment in a mutual fund is provided with ample options, and hence, it is considered as the avenue with the most flexibility. Here one can invest in close-ended funds where the amount needs to be blocked for a few years or one can also go for an open-ended fund where he can withdraw the amount any time. The companies, after accepting the application, offer a statement where there is a folio number, and all the details of the investment are mentioned. One can check the fund as well as return and NAV as per his requirements.
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