All About the Common Account Number – CAN

The Common Account Number (CAN) is a reference number provided by MFU or the mutual fund’s utility platform to mutual fund investors.

Introduction

The MFU (Mutual Fund Utilities), a shared platform, is used by all Indian AMCs. The MFU has made it easier for all mutual fund investors to manage and track their investments on the MFU website. This is accomplished using the CAN (Common Account Number) service, which requires investors to self-register on the MFU platform in order to track their investments’ progress.

Read, also: How Do Mutual Funds Work And How To Invest Them Online?

What exactly is a CAN (Common Account Number)?

MFU or the mutual funds’ utility platform provides mutual fund participants with a reference number known as the Common Account Number (CAN). This platform is important for investors since it consolidates and streamlines investor holdings from many fund houses into a single statement. Using a single transaction form, the MFU also supports transactions in many schemes. 

This platform is important for investors since it consolidates and streamlines investor holdings from many fund houses into a single statement. By utilizing a single transaction form, the MFU also facilitates in the promotion of transactions across many schemes. To get a CAN, an investor must complete the KYC process, which is a one-time operation.

What is the procedure for registering for KYC in order to receive a CAN?

The following are the steps to completing your KYC:

Step 1: Investors should get a KYC form from an AMC or a transfer agent’s website. They can also go to the ‘Downloads’ area of the CDSL website.

Step 2: Print the KYC application form for each individual application (for a fresh KYC).

Step 3: Fill out the form and attach self-attested copies of the following documents:

1. Identification proof
2. Address Verification
3. Identification Card (PAN)
4. Photograph

Step 4: Fill out the form and return it to the AMC or a Registered Transfer Agent where you intend to invest. Please keep in mind that there are no fees involved with signing up for KYC.

Did you know?

The Common Account Number (CAN) will simplify transactions in a variety of MF schemes by using a Common Transaction Form (CTF) and a single consolidation payment.

Why should a Common Account Number be created?

The MF Utilities (MFU) site allows all mutual fund investors to track and manage their investments on a single platform. The MFU will map your existing investment folios – across the sea of mutual funds you’ve invested in – to your CAN after you’ve been issued a Common Account Number. This mapping will be based on your PAN data and will take into account your holding pattern, among other things. Once you’ve constructed the CAN, it’ll act as the de facto store for all important information, including financial data: 

1. Names of Investors
2. KYC Status
3. Income Details
4. Mode of Holding
5. Nomination
6. Nationality
7. Tax Status
8. Contact Information of Primary Holder
9. Multiple bank accounts registered at the CAN level
10. Depository account information
11. Power of Attorney, if applicable
12. Guardian information for a minor applicant m. FATCA, UBO, and OECD relevant information

The Advantages of Using CAN Migrate to a Single Portal·

The Common Account Number (CAN) will serve as a single point of reference for all mutual fund investments, reducing confusion.

• The MFU will act as a Neutral Point of Service regardless of the mutual fund’s transfer agent (POS).
• Investors will have access to a single payment option for investments via a single, consolidated form, as well as a Common Transaction Form that may be used to transact in many schemes at the same time and across mutual fund types.

Investors will have a range of payment options to choose from, including both physical and electronic ways.

• Investors can get a comprehensive view of their assets across the industry by using their CAN information.
• Alerts, triggers, reminders, and other notifications will be sent to investors for their transactions, as well as important dates such as SIP expiration.
• In the event of a complaint, the MFU will act as centralized complaint management and monitoring system, logging complaints from all around the industry.

How will existing folios or investments of an investor be moved or linked to the MFU?

Investors will not be able to move their existing assets to the MF utility platform, according to the website. The MFU will begin mapping investors’ present folios (from various mutual fund types) to their CAN after they have created their Common Account Number. The investor’s PAN, holding pattern, and other criteria will influence the migration.

Read, also: PRAN – Permanent Retirement Account Number