[This post originally appeared on the Unovest Blog. Click here to read it there.]
Life without a Common Account Number (CAN)
Rohit wrote to me recently asking for advice on his mutual fund portfolio. He shared with me an excel sheet that he used to track his investments. It had the names of the funds, the folio numbers, in whose name the holding was, the broker who had facilitated the transaction, amount invested and units.
I suggested to Rohit that we verify all the investment holdings from the AMC or Registrar statements. I shared with him the link to download a consolidated statement across all mutual funds.
However, the pre-condition for this to work is that you have a common email id registered for all your investments. The consolidated statement will reflect only those investment of yours which have the same email id.
If you have multiple email ids then you have to generate multiple statements using one email id at a time.
Rohit did some work only to realise that he was NOT able to get statements of all his holdings. First he realised that he had used 2 email ids. So he generated two statements. But that still didn’t sum up for all his investments.
He then realised that probably some of his investments don’t even have a email id registered.
What to do now? He used the folio numbers that he knew to download individual statements. He has contacted his agents/brokers/banks for the necessary updation but that too will take time.
Over a week has passed and we are yet to receive all the statements to verify the transactions.
Yet another story. I read on a forum recently where this gentleman wanted to change his bank account details across all his mutual fund investments. His question was if he could do it using just one form?
What do you think? Can he?
The answers he got were to contact each of the AMCs or Mutual Funds separately to contact the registrars like CAMS and Karvy to get the job done.
Hmm.
Yet another case. If you are an existing investor in mutual funds, you must have been receiving emails from mutual funds or calls from your distributor to provide your Additional KYC details or do the FATCA compliance.
It was a real hassle for investors who kept receiving multiple communication from different mutual funds. The biggest issue is that if you don’t comply with the requirements, your mutual fund investments could stop.
What were your options to comply and provide the required details?
If you happen to have investments in schemes of HDFC Mutual fund, Quantum Mutual Fund, Sundaram Mutual Fund and Franklin Templeton Mutual Fund, you would need to visit websites of each of these AMCs and submit your details. The other option is visit the websites of the registrars like CAMS, Karvy, Franklin and Sundaram BNP and provide your details there.
Ah! Effort, effort and more effort.
Now, what if I told you that you could act upon each of the above issues and resolve them in one single action?
Only if you had the Common Account Number or CAN issued by MF Utilities.
I recently signed up for Common Account Number. As soon as it was created all my details across my mutual fund investment holdings were updated in one shot.
I am sure, by now, your mind has triggered a spate of questions. Such as:
- What is Common Account Number or CAN?
- What are the benefits?
- How can you get it?
- What is MF Utilities?
- Is it a distributor? Can you trust it?
- Is there a charge or a fee for it?
- and more…
Let’s get the answers one by one and see how does a life with a Common Account Number would be like.
What is a Common Account Number or CAN?
A Common Account Number is a single reference number issued by MF Utilities (MFU) for a unique combination of
- Number of Investors (1, 2 or 3)
- Order of Holding (A, AB, ABC, BA, AC, CBA)
- Mode of Holding (Single, Joint, Anyone / Survivor)
- Status (Individual, Non-Resident, Company, etc.)
Common Account Number or CAN is your universal folio number for the Mutual Fund Industry. CAN will hold centrally for the industry, the information like:
- Investor Name(s)
- KYC Status
- Income Details
- Mode of Holding
- Nomination
- Nationality
- Tax Status
- Contact details of the primary holder
- Multiple Bank Accounts registered at CAN level
- Depository Account details
- Power of Attorney, if any
- Guardian Information for minor applicant
- FATCA, UBO & OECD related details etc.
What are the benefits of Common Account Number or CAN?
With a CAN, you can:
#1 Update any or all of your details at single place, just once and it would get reflected in all your investments (and not face hassles like you read about earlier in the post).
#2 Do your transactions in mutual funds by just using one form and one cheque. Absolutely no need to fill in multiple forms or give multiple cheques. Soon, this will be online too.
#3 Start multiple SIPs in mutual funds using just one bank mandate using one Common Transaction Form.
#4 View a consolidated view of your investments across industry.
#5 Centralised complaint management and tracking system for complaints across the industry.
Simply put, there will no need to fill new forms every time you were to choose a mutual fund to invest in. One number, one form, one cheque, one place – that is it.
How can you get your Common Account Number or CAN?
To get a Common Account Number, you need to fill up the CAN registration form. You can download the form here. Fill up the required information and supply the necessary documents as mentioned. The form can be submitted to one of Points of Service as mentioned on this link.
Once you have submitted the form, you will receive an SMS and an email or your registered mobile phone and email address, confirming the CAN allotted to you. This should take upto a week.
If you are an existing investor, all your folios across mutual funds will be updated with the latest information that you provide in your CAN form except your address which will still reflect the KYC address.
Please note: KYC Compliance is compulsory for CAN creation. If you are not KYC compliant, you can give your KYC application along with your CAN application.
What is MF Utilities?
MF Utilities is an initiative by the Mutual Fund Industry to bring ease and convenience to doing mutual fund transactions. Through the creation of CAN, it makes it super easy to invest in mutual funds, using just one cheque, one form or one login. You can also invest in direct plans through MF Utilities.
Is MF Utilities a distributor? Can one trust it?
No, MF Utilities is not a distributor. It is an organisation created by the Mutual Fund industry to build a system for the benefit of investors, distributors and the mutual fund companies. I guess that itself makes it trusted.
Will MF Utilities also give you advice on which funds to buy or sell?
No, MF Utilities will not give advice at all. It is an industry system agnostic to any mutual fund and works for the benefit of all. The primary purpose of the organisation is to provide the technology, system and support to investors, distributors and mutual fund companies.
If you wish to get advice, you should get in touch with an investment adviser or a distributor of mutual funds.
Are there any charges or fees applicable?
There are absolutely NO charges or any fee payable by the investor for getting a CAN or doing the transactions.
Can you hold multiple CANs?
Yes, you can hold multiple CANs for different combinations of holders. For example, in case of Rohit, he can have a CAN in his individual name and a CAN in his wife’s name and another CAN in their joint names.
For more FAQs on CAN, MF Utility, please visit this link.
As you now know, mutual fund transactions are now so convenient and hassle free.
I would strongly recommend that you get your Common Account Number or CAN today. That would be a good beginning to the year 2016 for you.
Yes, you CAN do it with mutual funds.
Download CAN registration form for Individuals
Download CAN registration form for Non-Individuals
Alternatively, you can create a FREE account on my new platform Unovest and create your CAN application there. You just have to print it and send. That’s it.
Click here to create your FREE account now.
If you have any queries, do write in the comments or send an email.
Hi Vipin,
I already am registered with Mycams for mutual fund investment. I am now considering getting my parents registered as well on Mycams portal. Is it possible If i use the same mobile number and email ID for both my parents that I am already using for my account with mycams? Will this work or should I have a separate email and mobile numbers for my parents as well.
Ashish, you can use the same contact details. Thanks.
Hi Vipin
You mentioned in your article “If you are an existing investor, all your folios across mutual funds will be updated with the latest information that you provide in your CAN form except your address which will still reflect the KYC address.”
However, I just checked my portfolios with different MF on MyCAM and it seems the phone/bank/email etc. information is still the same as before i.e. no effect of CAN. I was hoping that registering CAN would let me change my banking/email/phone etc. information across all MFs portfolios in one go but it doesn’t seem to be the case
Dear Varun
It has been observed that the updation is taking time to happen from the AMCs end. The required information is being passed on to them by MFU though.
How much time since you had a CAN?
Thank you
MFU is not covering all fund houses. It is only participating fund houses, just like MyCAMS. I wish there was an app covering all the mutual fund houses. ICICIDirect insta account does offer all the mutual funds, but they don’t allow direct plans.
That’s true Krupal. Not all fund houses are covered. The solace is that MFU still provides schemes from Sundaram, Franklin and lot many others which are otherwise not available on direct only platforms.
It is mostly the foreign owned fund houses that are missing from MFU – Mirae, Invesco, BNP, etc.
Meant whether I can access the Common Account through MFU /unovest,
What is the process If I have to do transactions through MFU/unovest once I have CAN.
CAN is a number provided by MFU. No private entity can claim ownership of it. To use it on MFU, you can request online access from the support team.
On Unovest, you can just enter your CAN and start using it. Read more here . http://www.unovest.co/faqs.
Thanks.
Thank Vipin for such a quick reply, never expected…
Yes, I am able to do that, for first 6 months it is free and they will charge later a fee of 99/month.
Need advise whether it is safe to invest through an app and how I can access the CAN from other sources.
Best Regards
Satishwar Reddy
I don’t see a problem with an app per se.
With that fee structure, you should see if you want those advice and services.
If you are only going to transact, you can use MFU directly or Unovest, where there are no transaction charges at all.
Not sure what you meant by “access the CAN from other sources.”
Regards
Hi Vipin,
I have CAN # opened through wealth Trust app, I have Mutual Funds bought from ICICI direct, want to switch to direct from regular.
If I am operating through Wealth Trust App and investing , is this advisable and OK, I am told that I can access 25 AMCs and invest/switch through app itself.
Best Regards
Satishwar Reddy
Hi Satishwar
It appears that WealthTrust app also uses MFU at the back end, like Unovest (www.unovest.co) does.
If you are able to switch from regular to direct, then that’s great.
I am not really sure what else does the app do or are there charges for using it.
Thanks.
hello sir,
i am new in mf industry and want to invest in mf through SIP with small amount in starting.i am trying to getting more and more knowledge about for same and i found direct plan,equity or open ended scheme are best.
i have completed my kyc registration.but i little confused about some points (as per written below):-
1) best platform to invest in india (amc,rta or registrar or direct to company website)
2) how to know difference between direct plan and regular plan if we invest through online (self)
3) pl suggest top mf funds for invest in for for 3-5 years period with direct plant (equity and open ended)
pl suggest me best way.
Dear Jai
Thanks for asking. To answer your questions:
1) You can choose either of the platforms. If you are going to choose direct plans then MFU platform is one great option. Unovest (smart.unovest.co) also offers free transactions in direct plans only using the MFU backend infrastructure.
2) All direct plans have “direct plan” in their name. That’s the way to identify them.
3) What do you mean by the word top? Why only 3 to 5 years for equity funds? I hope you want to invest for longer 10 years plus.
Hope this helps.
Thanks for your quick response.
Hi Vipin, your website seems highly informative. I am enjoying it.. Thank you so much..
I got a question.. i am thinking of start investing in MF for me, my sister and my parents.. which is better? to have a separate CAN for each member? or single CAN for all members? Can you pls help me
Hi Anand, Thanks for your words.
In my view, create separate CANs. Your parents could have a CAN based on anyone/survivor holding basis. Your sister and you can have separate CANs. This would be helpful in case where each will use their own money to make investments. Accounting towards taxes etc would also be easier.
You can make nominees in each of the CANs.
Hope this helps.
I got CAN number but what next? I got through Karvy Pune. Can I invest in direct mutual fund through same office??
Shiv, you can use the CAN to invest via MFU. You can visit mfuindia.com to know more details.
FYI, Unovest, our initiative also allows you to invest online using the CAN. You can create your account here smart.unovest.co.
Hope this helps.
Hello,
what is CAN transaction CTF-SIP registration form & do i need to be fill that .One final thing as for KYC i have an option to complete it through E-KYC process as i am in saudi arabia right now, but for CAN and payezz do you have any suggestions please , how i can complete it through online or anyother way also for the same CTF if required.
If possible can you please give me step by step after completing KYC.
Highly appreciate your support.
Dear Mohammed, Thanks for the query. Once you have completed your KYC, you can login to Unovest and create your CAN application by filling it online. The system will generate a PDF For you which then, along with the necessary document proofs, has to be sent to the MFU office or to Unovest.
With the CAN form, also include a PayEzz mandate form which will allow you to start your online SIPs. The link for the same is available on Unovest too.
Unforunately, as of now the process is offline. Let me know if you have more queries. Thanks.
Thanks but what about CTF-SIP ..? do i need it also with payezz
No, you would not need CTF-SIP for online transactions.
Hi Vipin,
I have a query related to CTF-SIP transaction form. If it is not mandatory then where I will mention the Mutual funds scheme names in which I will be going to Invest through MFU.
Please clarify.
Dear Manish, Not sure if I understand your query well. A little more detail would help.
Are you investing offline via MFU using CAN?
Hello,
I would be thankful if you can answer few queries regarding this CAN.
1. I already have a CAN. Now, if I want to invest across multiple AMCs, I have to fill a CTF SIP registration form, attach a cancelled check, go to an MFU POS and physically submit them right? And if I want to redeem/switch I have to fill another CTF and repeat the process right?
2. I don’t understand the convenience if I can NOT do all this online. Instead I can login to each AMC without going anywhere and do whatever I can.
3. If I want to see all my funds at a place, there are websites already which provide that facility right -moneycontrol or valueresearch (No need to maintain excel sheets). How does CAN help in these matters?
Thanks
Aditya
Hello Aditya,
Getting a CAN is part 1 of the process. Once you have got your CAN, you would need to send an email to clientservices@mfuindia.com requesting to activate your online transaction service. Once that is approved, you will receive an email using which you can create your USERID and PASSWORD to login online into the MFU system and do you transactions online.
Hope this helps.
Got it . Will put in the request and see what happens.
Thanks a bunch !!
Yes sure. Thanks
Thanks a ton!
Pleasure!