Today, there are several options available for you to transact online in mutual funds.
However, there is a unique facility that you should definitely use for your MF holdings. I am talking about the Common Account Number or CAN. The CAN is issued by MF Utilities or MFU, a mutual fund industry initiative.
A CAN comes with several benefits. It not only gets you a single point access to transact online in direct plans of several mutual funds but also enables you to manage your personal data in MFs through a single point.
Each CAN represents a holding pattern. So, if you are an investor in mutual funds and you can create a single holding CAN. Once created, it will automatically map your existing MF investments to itself, which will be visible to you on your login at www.mfuonline.com.
A CAN is like your super folio for all the available mutual funds. Once you update your information in the CAN, it is captured by all the folios/accounts with various mutual fund schemes that you hold.
Indeed, you should get a CAN for your mutual fund holdings.
The good news is that you can now apply and get your CAN online, completely paperless.
Let’s now quickly dive in and create an e-CAN for an existing MF investor and for a new MF investor. Let’s first see what the existing MF investor needs to do.
How to create an e-CAN or Electronic CAN for an existing mutual fund investor?
Before you can take the online route for your CAN, 3 conditions have to be fulfilled.
- You should have done a regular KYC (and not Aadhar based e-KYC). How do you know if you have one? Go to this link and check out if your KYC is complete.
- You should have an existing investment in one of the Mutual Funds on board with MFU. There are currently over 25 of them including all the major ones.
- The bank account that you plan to register with your CAN should already be registered with your existing mutual fund investments.
Once the above 3 conditions are fulfilled, you can go ahead and click on this link. You will see a page as below.
- Enter your Email id and click on New Form button. You will then be subsequently taken to the page on mfuindia.com as below.
- First select the type of CAN registration. If you fulfil all the above 3 conditions, then select Completely Electronic option.
- Enter the RIA SEBI Regn No. as INA000003643. It helps us to support you in case something goes wrong. Ignore the EUIN field.
- The Tax Status selection includes Resident, Minor, NRI-NRE, NRI-NRO and various combinations. Choose the one relevant to you.
- Then select holding type (Single, Anyone/Survivor, etc.) and enter the number of holders/applicants for the CAN you are creating. The CAN that you create should ideally reflect holding types in your existing MF investments. (You should avoid Joint type holding since online transactions can be a problem with that holding).
- Fill in the required details related to each of the applicants, their additional KYC details, address, etc.
- When it comes to bank account, you must enter the bank account details that exists in your current MF holdings. You can additionally add more banks (upto 3).
- You can choose to add nominee information here itself.
- Submit the application.
- Once this is done, you will get to a screento upload your documents for proofs – SELF ATTESTED PAN CARD COPY AND CANCELLED CHEQUE(S) OF THE BANK(S) YOU WANT TO REGISTER
Note: To get your CAN confirmed faster, you must upload a signed, self attested PAN card copy on MFU.
After this process is complete you will be allotted a CAN. However, this e-CAN is provisional and subject to verification of your details with the documents you have submitted.
You may also receive an email from MFU for submission of documents, which has 3 points mentioned. The 3rd point usually causes confusion. However, you can safely ignore that.
Remember: You can not immediately start to transact online once you get your CAN. In a couple of days, the MFU team will verify all details and confirm your CAN number. You can transact after this confirmation.
You will also get an email from MFU with 2 attached documents – one, has the CAN information and the other is a summary of all your existing folios that you have invested in the past.
That’s it. You have a fully working CAN now. You can enter this CAN into your FREE Trial Unovest account and start transactions right away.
You may also request MFU to create your online login for you directly into their website.
You can create multiple CANs
You can create multiple CANs with different holding types. So, you can have a single CAN, a Anyone/Survivor CAN with your spouse.
If you are an NRI, you can have a CAN for your NRE account and another for your NRO account.
You can also have a CAN for your minor child.
For more detailed instructions on how to fill an e-CAN form, click here to download the instructional manual.
How to create an e-CAN or Electronic CAN for a NEW mutual fund investor?
So, if you have never invested in mutual funds before, you can still generate an e-CAN. You should have done a regular KYC (and not Aadhar based e-KYC). How do you know if you have one? Go to this link and check out if your KYC is complete.
The remaining process remains the same. You can also provide upto 3 bank accounts immediately.
What if you don’t fulfil the above mentioned conditions?
Not to worry. In that case, right on the first screen, select the CAN registration type as Partially Electronic and go ahead to fill other details. You will have to submit physical documents to a Point of Service to enable MFU to confirm the provisional CAN that you are allotted.
For more FAQs about e-CAN, download the document here.
What if your KYC is not done?
No worries again. You can also do a regular KYC online. Some of the mutual fund houses such as Birla, Reliance and Quantum have started to provide this service. Based on experience, we would recommend using Quantum Mutual Fund’s service.
Go to at eKYC.quantumamc.com, fill in the required details and then they will schedule a call with you for online verification via a video call.
IMPORTANT: Please understand that when you use a service of any of the providers mentioned above, they can store your personal information for the specified purpose, sometimes even as a part of regulatory requirements. You are advised to use the services at your own discretion.