The Times Of India - Mumbai, 1/19/2020 Cropped page Page: 9

SWATANTRA KUMAR EXPLAINS: Equity Linked Savings Plans (ELSS) are themost popular mutual fund plans to save taxes. These goveernment-

approved tax saving mutual fund schemes invest at least 65% inequities and the balance in oother instruments. You can invest upto Rs 1.5 lakh per annum to save taxes under Section 80CC of

Inccome Tax Act. To avail of the tax benefits, you should remaininvested in these plans for three yearss, the lowest such lock-in fortax saving instruments.

KYC COMPLIANCEWHEN YOUR CHILD

BECOMES AN ADULT

Recently Sebichanged the rulesfor KYC compliancewhen your child, inwhose name youhave someinvestments, turnsadult. Once yourchild attainsadulthood, youneed to submit KYCdocuments forhim/her. For thisthe child has toprovide his/herown bank accountdetails also.

DOCUMENTSREQUIRED FOR KYC

Filled up KYCform (Your mutualfund will give you ablank form)

A copy of yourIncome Tax PANcard

A proof of identity(A copy of Passport,Voter ID, DrivingLicense orAadhaar)

One of theabove is valid forproof ofcommunicationaddress

Bank accountdetails

Contactnumber and emailID (for ease ofcommunication andhigher safety ofyour investments)

STEPS TO DOWNLOADAND SCAN A QR CODE

Download QR codeapp on your phone

Run app and scanthe QR code

Your smartphonewill read the code &navigate to thedestination

Scan the QR code to knowthe rights and responsibilities

of an empowered mutualfund investor.

Scan this QR codeWhy it's a must to be KYC

compliant? Here are the detailsabout the KYC process.

Scan this QR code to calculatethe amount you need to invest to

achieve all the milestones youhave set for yourself.

DISCLAIMER To know about the KYC documentary requirements and procedure for change of address, phone number, bank details, etc. please visithttps://www.utimf.com/servicerequest/kyc. Please deal with only registered Mutual funds, details of which can be verified on the SEBI website under"Intermediaries/market Infrastructure Institutions". All complaints regarding UTI Mutual Fund can be directed towards service@uti.co.in and/or visitwww.scores.gov.in (SEBI SCORES portal). This material is part of Investor Education and awareness initiative of UTI Mutual Fund.

Do you check the rates on food deliveryapps before deciding on the restaurant totreat your friends?

B) No

A) I will try to clear mydebt as much as I can

B) I will buy a fancyphone on EMIs

C) I will investthe money

ILLU

STRA

TION

S:SA

CHIN

VAR

ADKA

R A) Yes

Share your answer via SMS TypePoll<SPACE>Your answer (A OR B) to 5676756

READER'SPOLL

Your mutual fund housecould help you completethe KYC process

There are KYCregistration agencies also

Your broker/financial

advisor/financial plannercould also help you

Please note: Once you havecompleted your KYC for any ofthe Sebi regulated entities, youdo not need to repeat theprocess

Are you KYCcompliant?This is a must for investing in mutual funds

BEWARE OF KYC FOROLD INVESTMENTS

If you have an old investment, check if it'sKYC complaint. The letter on investments thatyou get from your fund house will most likelytell you if the KYC is updated or not. If the KYCis not updated, you should do it on a prioritybasis. Else you would face extreme difficultyat the time of redeeming your investments.

— This article has been exclusively created for UTI SWATANTRA

HOW TO COMPLETE THE KYC PROCESSOption Awill get you out ofthe debt trap slowlybut your money willnot grow

Option Bwill mean addingto your debt withthe additionalmoney

Option Cwill mean youcan grow yourmoney overtime

While investing your money is important to grow wealth, you must first try toreduce your debt. The best way to go about this would be to understand your financialstate. If you have debt piled on, use most of the money to reduce it. But make sure youinvest at least some amount. Someday, this little amount will convert into crores.

EXPERTOPINION

RESULTIn the last edition, we asked you - Yeh jo thode se hai paise,would you rather spend, reduce your debt or invest?

WHICH IS THE MOSTPOPULAR MUTUAL FUND PLANTO SAVE TAXES?

DEMYSTIFIER

Atish Hire replies,

Iappreciate that yousave Rs 11,000 everymonth. This is a good

move. However, out of Rs 11,000, you are allocat-ing Rs 9,000 towards fixedreturn instruments and Rs 2,000 towards equityinvestments. Consideringyour age, it should be

around Rs 7,000 in equi-ties and Rs 4,000 in fixedreturn investments.

Ideally, you should re-duce your PPF and bondfund investments to Rs 1,000 and increase theallocation in mid-cap orsmall-cap fund. So itshould be Rs 1,000 in PPF,Rs 2,000 in RD (to meettravel expense) and

Rs 1,000 in bond fund (foremergency), Rs 1,000 inlarge-cap fund, Rs 3,000 insmall-cap fund, Rs 2,000in mid-cap fund and Rs 1,000 in a diversifiedequity fund. In the long-run, equity funds will helpyou earn good returns.

You can continue yourlump sum investment asit is. You should also in-

crease your health insur-ance coverage up to Rs 5 lakh, which will notcost you more than Rs 7,000 per year.

— The writer is a partner,Globalview Financial

Services, MumbaiThis article has been

exclusively created for UTI SWATANTRA

CASE STUDY

‘IPV IS COMPULSORY BEFOREKYC GETS REGISTERED’

Rajesh Minocha

Know Your Customer(KYC) is mandatory

for mutual fund (MF) in-vestments in India. Itneeds to be done onlyonce and is different frombank KYC. You could nowdo a Central KYC whereina 14-digit KYC Identifica-tion Number (KIN) getsgenerated and can beused across MF invest-ments, bank accounts and

insurance. It’s a processthat can be completed of-fline or online.

For a resident Indian,the KYC form needs to besubmitted along with self-attested PAN card andany one of the specifiedaddress proof documents.If the investor is an NRI,few additional documentslike passport, foreign ad-dress proof and POI/OCI,if applicable, need to beprovided. FATCA/CRS in-formation is also manda-tory wherein Tax Identifi-cation Number issued bythat country needs to bementioned. The documen-tation is different for non-individual KYCs.

Online KYC can be donethrough a few websites

and apps. The process isstill evolving after theSupreme Court judgementin September 2018 whichbarred firms to fetchUIDAI database for identi-ty verification purposewithout exclusive consentof the individuals. In-Per-son Verification (IPV) iscompulsory before KYCgets registered. For of-fline, it can be done bysubmitting the documentsto your distributor/finan-cial advisor or any of theKRAs who verify docu-ments and provide theircredentials.

— The writer is a CFP andfounder, Financial Radiance

This article has beenexclusively created for

UTI SWATANTRA

GURU SPEAK

‘EQUITY FUNDS CAN GIVE GOODLONG TERM RETURNS’I am a 33-year old salaried woman with a monthly income of Rs 16,500 and monthlysavings of Rs 11,000. My monthly investments are: Rs 5,000 in PPF, Rs 2,000 in RD forone year (for travel expenses), Rs 1,000 in a large cap mutual fund, Rs 2,000 in a bondfund, Rs 500 in a banking & financial services fund and Rs 500 in an ELSS. Also I havelump sum investments of Rs 5,000 in a large & mid cap fund and of Rs 6,000 in each oflarge cap and hybrid debt funds. I also have Rs 2 lakh health insurance for which I pay ayearly premium of Rs 5,004. Please suggest if my investments are on the right track.

— A Shah

SUNDAY TIMES OF INDIA, MUMBAI JANUARY 19, 2020 9

CCI NG 3.7 Product: TOIMumbaiBS PubDate: 19-01-2020 Zone: MumbaiCity Edition: 1 Page: TOIMINT1 User: sanjay.dighe Time: 01-18-2020 22:27 Color: CMYK

UTI Mutual Fund ,

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UTI Mutual Fund

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EVERYTHING YOU NEEDTO KNOW ABOUT

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li (Know Your Custorned is a oneAme process followed by SEBI-regis%red intermediaries. it validates a customer's identityand address, in order for them to invest in Mutual Funds. Hence every customer must adhere to KYC procedure beforestarting a now investment, in any of the Mutual Funds.

You need to submit the follwMi l documents for your KYQ

[Z KYC Form, filled ond signed 0 Photograph Proof of Address Proof of Identity

Acceptable prooF* oF address and idenfity are:

DRIVING LICENSE PASSPORT- - - - - - - - - - - - - - - - - - - - - - - : 0. ,

OTHER

VOTER'S IDENTITY CARD

DOCUMENTUTILITY BILL WHICH IS NOT MORE NOTIFIED BYTHAN .MONTHS . . CENTRAL GOVERNMENT

it is mandatory to update Permanent Account Number (PAN) of all the holders under the folio to enable investors totransact (also applicable to redemption) in the folio. PAN con be updated by submitting the form for updotion of PAN dulysigned by the holder/s together with the s4oftested copy of PAN cord.

To know more about KYC or complete your KYC,contact your mutual fund distributor, give a missed callon 8655097225 or scan this QR code.

'Ori ginal documents need to be shown for verification. 'PAN not mandatory for investment up to 250,000 per financial year per Mutual Fund.To know about the KYC documentary requirements and procedure for change of address, phone number, bank details, etc. please visithttps://www .ut imf.com/servicerequest/kyc . Please deal with only registered Mutual funds, details of which can be verified on the SEBI website under"Intermediaries/Market Infrastructure Institutions" . All comp laints regarding UTI Mutual Fund can be directed towards service@uti.co.in and/or visitwww.scores .gov.in (SERI SCORES portal). This material is part of Investor Education and Awareness Initiative of UTI Mutual Fund.

MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.