The Mutual Fund Utilities (MFU) platform is a common shared platform used by AMCs in India. This platform makes it easier for investors to manage their investments. Through Common Account Number (CAN), investors can register with the MFU platform to track their investments.
What is a Common Account Number in a Mutual Fund?
A Common Account Number (CAN) is a single reference number issued to mutual fund investors by Mutual Fund Utilities (MFU) Platform. This platform is beneficial for investors as it helps in facilitating and consolidating the investments across different fund houses into a single statement. Also, through the MFU platform, investors can track their holding and carry out transactions using the CAN. In other words, this platform has helped investors ease the transactions in multiple schemes via common transaction form (CTF). However, investors must complete their Know Your Customer (KYC) to obtain their CAN.
Investors must first obtain a CAN, as this will map all the existing mutual fund folios across fund houses and provide a consolidated view of all mutual fund investments. This is because CAN is held nationally across the industry and includes all details such as name, mode of holding, nomination, KYC status, nationality, tax status, bank account details, depository details, guardian details, etc.
Benefits of having a Common Account Number
The following are the benefits of having a Common Account Number:
- The CAN acts as a single reference number for all the mutual fund investing and reduces ambiguity.
- MFU platform will act as a neutral Point of Contact (POC) irrespective of the transfer agent servicing the mutual fund.
- Investors will have access to a Common Transaction Form to transact in multiple schemes across different fund houses. Investors can purchase (SIP or lumpsum), redeem and switch (STP or SWP)
- This platform also provides a single payment facility for all investments with the help of a single consolidated form.
- Investors also have an option to choose the mode of payment, i.e. physical (cheque or DD) or electronic medium.
- The CAN detail provide a consolidated view of mutual fund investments across AMCs.
- This platform also gives investors alerts, triggers, reminders, etc., for their transactions and essential deadlines like SIP expiry.
- For any queries, investors can log in their complaints to MFU as it acts as centralised complaint management.
How to Obtain a Common Account Number?
You can obtain a Common Account Number (CAN) online or offline. To avail of the CAN, the following are the prerequisites –
- You should be a KYC complaint (other than eKYC for Aadhar based KYC)
- You should be an existing mutual fund investor
- The bank account you register on the MFU shall be your default bank account in your existing mutual funds.
The following are the steps that help you create an e-CAN instantly. Currently, the eCAN facility is provided for individual investors only.
- Firstly, you have to visit the MFU India website. You can also visit any intermediary portal associated with MFU to register.
- Enter your email ID or mobile number and click on ‘New Form’. Verify the captcha code.
- You have to select the CAN criteria. Then select your Holding Nature from the drop-down menu and other details.
Note: You will have a different CAN number for each holding type.
- Further, you will fill in all the required details under each Sole/Primary Holder, Bank Accounts and Nominees tab.
Note: You can register up to three bank accounts.
- After updating all details and uploading the required documents, click on ‘Submit for eCAN’.
- After your registration is submitted, you will receive a link to your email in case you have to upload any relevant documents.
- Finally, your CAN will be approved and activated after complete document verification.
The following are steps to register for CAN offline –
- Firstly, you have to visit the nearest MFU authorised entity or point of service.
- You have to fill out the CAN registration form. This is also available online.
- You need to sign the form and attach the self-attested documents duly.
- Submit the forms physically to the service provider.
- Once the documents are submitted and verified, CAN is generated and intimated to the investor.
Documents Required for a Common Account Number Registration
The following are the documents required for CAN registration. These documents shall be self-attested and submitted under the receptive sections of the CAN registration form.
- PAN card
- Proof of KYC
- Board Resolution (not for individual investors)
- Authorised Signatory List
- Proof of bank account for bank mandates registered under CAN
- Proof of depository account for depository accounts registered under CAN.