Reliance Mutual Fund opens door to small investors without PAN

MUMBAI: In what could be a significant step towards financial inclusion, Reliance Mutual Fund has launched a micro investment facility that allows people without PAN cards to invest in mutual funds. The KYC norms of Sebi require an investor to furnish his PAN details when investing in any mutual fund scheme. However, small investors who don't have a valid PAN can invest up to Rs 50,000 in a financial year under the micro investment facility launched by the fund house. The investment can be lump sum or through SIPs in any scheme of the fund house but cannot exceed Rs 50,000 in a financial year.

The move comes at a time when Sebi is urging mutual funds to look beyond the metros and big cities and spread to smaller towns for greater financial inclusion. Reliance Mutual Fund is the second largest mutual fund house in the country with a nationwide network. It manages assets worth Rs 95,000 crore.

The micro investment facility is open only to individuals, including NRIs, minors acting through guardian, sole proprietorship firms and joint holders. In case of joint holders, the first holder must not possess a PAN. Other categories of investors, including persons of Indian origin, HUFs and institutional investors, are not eligible to opt for this facility.

To invest under the micro investment facility, the investor must fill up the common application form and submit it at any investor service centre of Reliance MF along with an acknowledgment from a KYC registration agency for exemption from PAN KYC.