Securities and Exchange Board of India (SEBI) and stock exchanges like BSE have recently issued circulars regarding the linking of Aadhaar number to Demat Accounts for stock trading.
The Bombay Stock Exchange (BSE) issued a circular few days back, wherein they have informed all Demat account holders to link their accounts with Aadhaar on or before December 31, 2017 31st March, 2018.
BSE has also referenced to Prevention of Money Laundering (Maintenance of Records) Rules, 2005, which was amended on June 1st, 2017 to make provision of Aadhaar as a form of eKYC for stock trading.
What about Mutual fund investments? – Yes, very soon it is going to be mandatory to link your Aadhaar number to your Mutual Fund investment folios.
As per the recent amendments to Prevention of Money Laundering Act (PMLA) Rules, 2017, Financial Institutions like Mutual Funds are mandated to obtain Aadhaar Number from their customers and link the same to the respective accounts / Folios.
How to link Mutual Fund folios with Aadhaar number online through CAMS portal?
CAMS (Computer Age Management Services) is the first R&T agent to provide an online facility to link Aadhaar number to your existing mutual fund folios.
CAMS is the main R&T agent and services more than half of the mutual fund industry. CAMS serviced Funds are as below ;
- Birla Sun life Mutual Fund
- DSP Blackrock MF
- HDFC Mutual Fund
- HSBC
- ICICI Prudential MF
- IDFC MF
- IIFL MF
- Kotak Mutual Fund
- L&T MF
- Mahindra MF
- PPFAS MF
- SBI MF
- Shriram MF
- TATA mutual fund &
- Union bank MF
If you have invested in any of the schemes offered by the above listed Mutual Fund houses, you may kindly follow the below steps to link your aadhaar number to multiple mutual fund schemes in one go. 
- Kindly visit CAMS online facility
- You have to provide your email-id which is linked to your mutual fund folios, PAN number, you can select the list of funds in which you have invested in (serviced by CAMS), your Aadhaar number and mobile number which is linked to your Aadhaar. Click on ‘submit’ button.
- You will then receive an OTP to your registered mobile number, kindly enter that in the next screen and click on ‘submit’ button.
- CAMS will then cross-verify your details with UIDAI. Once the linking process is successful, a message as below is displayed on your screen.
- Kindly note that you will also receive an email-alert from UIDAI.
How to link Mutual Fund folios with Aadhaar number online through Karvy portal?
If you have invested in the below mutual fund schemes, you can now link your Aadhaar card number to respective MF folios by visiting Karvy portal.
Karvy provides R&T agent services to mutual fund houses like ; Axis Mutual Fund, Baroda Pioneer Mutual Fund, BOI AXA Mutual Fund, Canara Robeco, DHFL Pramerica Mutual Fund, IDBI Mutual Fund, INVESCO Mutual Fund, JM Financial Mutual Fund, LIC Mutual Fund, Mirae Asset Mutual Fund, Motilal Oswal Mutual Fund, Peerless Mutual Fund, Principal Mutual Fund, Reliance MF, Quantum Mutual Fund, Taurus Mutual Fund, UTI MF etc.,
- Kindly visit Karvy’s Aadhaar – Mutual Fund linking online facility
- Karvy is providing four ways to link you Aadhaar to Mutual Funds (serviced by Karvy).
- Online Linking through PAN
- Enter your PAN and click on Generate OTP. Kindly note that OTP will be sent to your registered Email-Id and/or Mobile number.
- You may select the mutual fund schemes that you have invested in and also provide your Aadhaar number in the relevant text box and click on ‘submit’ button.
- Once the linking process is completed, you will get a confirmation message from Karvy and also from UIADI regarding the successful authentication.
- If you have not registered your email or phone number, then you have to download the below form and submit it to any Karvy Branches or send to them through courier. Aadhaar linking to Mutual Funds Karvy Form Download.
- Through SMS – Along with the online process of linking, Karvy also started the process of linking Aadhaar to Mutual Funds folios using SMS facility. Send (ADRLNK <PAN> <AADHAAR NUMBER>) to 9212993399 from your registered mobile number. On authentication, the same will be updated across all your folios where Karvy is R&T Agent.
- You can also submit the linking request offline through your Mutual Fund Distributor.
- Online Linking through PAN
How to link Mutual Fund folios with Aadhaar number online through Franklin Templeton India portal?
If you have invested in any of the schemes offered by Franklin India, you can now link your Aadhaar card number to respective MF folios by visiting FT portal.
- Kindly visit FT portal, click on ‘customer service’ menu option and then select ‘update Aadhaar number’ option in the homepage.
- You have to provide your PAN card number and details of the selected additional questions (Date of Birth/Pincode/Last transaction amount). Click on the ‘next’ button.
- In the next screen, you have to provide your bank account number that is linked to your investments. Click on next button.
- In the next screen, you have to provide your Aadhaar number and click on submit button.
- You will then receive below message on the screen. You will also get message to the registered mobile number and email-ID.
Besides CAMS, Karvy & Franklin we have one more R&T agent namely ;
- Sundaram BNP Pribas Fund Services (SBFS).
Latest News (13-Mar-2018) : The Supreme Court has extended the March 31 deadline for Aadhaar linkages (except for Govt Subsidies & Welfare schemes) till the constitution bench delivers judgement on the matter.
Continue reading related articles :
I tried linking my mutual funds through Karvy online PAN based option. On checking the status after a week, it says seeding failure. When trying to apply again, it says PAN exists. Customer care does not respond even after a wait of 40 minutes. I am sure there is no mismatch of information any where.
Dear Mr aggarwal,
Can be a technical issue.
You may try linking it through the respective fund house website (if facility is available).
Hello Sreekanth,
Thank you for the very detailed article to link aadhar & MF.
I would like to know from you that is it necessary to have multi-cap / diversified fund in MF portfolio if I have 2- Large cap, 2-Balanced & 1-Midcap funds in my portfolio?
I had Reliance Equity opportunity fund & stop SIP a year back due to poor performance.
I’m doing SIP on ICICI Value discovery fund. Now this is also not good & planning to stop SIP.
Currently, I’ve HDFC Balanced, ICICI Balanced, ICICI Focused Blue chip, Mirae Emerging opportunity funds in my folio.
I wanted to continue these funds at least for another 2-3 years and move the existing funds from Value discovery & Reliance Equity opportunity funds to my current portfolio thru STP.
More than a 1.5 years back I took your suggestion on my portfolio & it really helped me to optimize no of funds & now getting decent returns.
Kindly share your valuable advice.
Regards
Mukesh
Dear Mukesh,
Suggest you to kindly not to churn your portfolio based on short-term performances of the schemes.
For a time-frame of around 5 years, you may allocate more amount to balanced funds.
Hi Sreekanth,
Thank you for your prompt reply.
I’m planning to simplify my portfolio. That’s the reason I asked the question of having diversified fund.
I’m going to keep investing in balanced fund for sometime.
I would like share an observation between Money Control & Value Research on ICICI Pru Value Discovery fund Category.
MC classified as Diversified fund. But VR classified as Equity-Large cap.
Under diversified VD fund has poor rating in MC.
But under Large cap VD fund has good rating in VR
I’m bit confused on the category.
I read an article in VR that now the VD portfolio allocation is more inclined towards large cap& not qualified for multi-cap category.
Pl let me know your recommendation.
Best Regards
Mukesh Kannan
Dear Mukesh,
Below is the investment objective of the Fund.
“Pru ICICI Discovery Fund is an open-ended diversified equity scheme. The objective of the scheme aims to provide long term capital growth by investing primarily in a well-diversified portfolio of companies accumulated at a discount to its fair value.”
So, based on the prevailing market conditions and cash-flows, the fund manager can take call on allocation of corpus to large/mid/small cap stocks.
As of now, the fund has higher allocation to large cap stocks @ 82%. This may vary from period to period.
Hello Shrikanth sir,
While registering my Aadhaar number with MF’s in CAMS, i got below message.
“Provided Mobile Number and Aadhaar mismatch with UIDAI. Please provide mobile number which is registered in Aadhaar”. Now i have forgotten the mobile number while while i was registering for it. (I was in different state at the time of registering it).
What is the procedure to get our mobile number now?
Thanks
Manoj
Dear Manoj..You may update your new mobile number for your Aadhaar by visiting nearest aadhaar enrollment center.
Kindly go through this article..
Hello Shreekanth,
Please do an article about how to link Aadhar Card with demat & stock account.
Thanks!
Dear Nathan ..Sure.. As of now, I guess no online linking facilities have been enabled.. However, an investor can submit offline request to his/her broker and can get the two linked..
Hi Sreekanth,
Hope you are doing well.
I have been following your articles from past one year on mutual fund investments and have been able to create my investment portfolio based on different recommendations/suggestions provided by you. Your articles have definitely helped me to understand the factors/advantages/disadvantages/nuisance involved in mutual fund investments. Please continue doing this wonderful work of educating people about financial planning.
I need your advice if the profile looks fine based on my risk and investment horizon given below. Please suggest if you see any modification which may help me to stream line my investment in a better way.
Age:- 30
Term plan:- 1cr
Health insurance:- 10 Lakh (Additional cover provided by my employer of 5 Lakh)
Emergency Fund:- 3 Lakh in saving account
Monthly expense:- 30 k
Owns a house, so no plan of buying one in near future
Risk profile:- Aggressive investor
Investment horizon:- 15-20 years for different goals
Currently investing in below schemes
1. Tax Saving (Monthly SIP plan for 10 years).
Reliance tax saver:- 2500
BSL tax relief 96 fund :- 3500
2. Child’s higher education (Monthly SIP plan for minimum 21 years)
DSP Blackrock Micro cap fund:- 3000
ICICI Pru value discovery fund:- 1500
3. Retirement (Monthly SIP plan for minimum 25 years)
BSL frontline equity:- 4500
Motilal oswal most focused 35 fund:- 2500
EPF contribution
I am expecting below corpus for above goals. I have considered 12% return on investment and also considered the inflation factor for coming to the final corpus.
Retirement:- 3cr after 25 years, will keep increasing my investment by 20% every year for this.
Down payment for new house after 10 years:- 30 Lakh
Child’s higher education after 21 years:- 50 lakh
Thank you in advance
Dear Paritosh,
Thank you for following my blog posts!
The listed funds are good ones.
The tax saving funds are for which goal?
Suggested readings :
Retirement goal planning calculator
Kid’s education goal planning
Thank you for the reply.
Tax saving corpus will be used for Down payment for my home which I am planning to buy after 10 years.
Dear Paritosh ..Ok, you may have to carefully time your SIPs in ELSS funds as the units are locked for 3 years.
Yes will take a note of this, thanks
Hi Sreekanth,
Hope you are doing well as always :).
I have a small query to ask you related to my investments.
I am planning to increase my allocation to Small Cap fund for one of my long term goals. I am currently investing 3000/Month via SIP mode in DSPBR Small Cap fund but as per fund’s restriction, I cannot increase the allocation in this fund. Could you please help me to take the right decision and answer my below queries
1. Should I stop my current SIP in DSPBR Small cap fund and start investing in below fund.
2. Fresh SIP of 6000/Month in Franklin India Smaller Companies. Please suggest if I have selected a correct fund for investment.
My time horizon is aprrox. 21 years and this allocation is attached to my Child’s higher education goal.
Hope to get your valuable inputs on the same.
Thanks,
Paritosh Maithil
Dear Paritosh,
Considering your investment time-frame, you may pick L&T Emerging business fund with an SIP of Rs 3000 and continue with your existing plan as well.
Thank a lot Sreekanth for quick response on my query. I will go with your suggestion and keep monitoring the performance of the scheme.
At first place I thought about this scheme only but as it was launched in 2014, I thought of shifting to an older scheme with longer track record. (as you always suggest to follow this strategy while selecting a fund).
Dear Paritosh,
Suggested it based on your investment time-frame, as you already have one fund with long track record, you may afford to take this risk!
Kindly note that Franklin Smallers cos fund is a good one, no doubt in that.
I have investments in Franklin smaller cos fund.
Perfect as always, Thanks for the suggestion Sreekanth
What about NRI’s? Does this rule applicable to NRI’s as well?
Dear anand ..I dont think it is required for NRIs to quote Aadhaar (as of now).
Can NRIs also get Aadhaar?
As per the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016, only a resident who has resided in India for a period or periods amounting in all to 182 or more in the 12 months immediately preceding the date of application for enrollment.
After entering OTP I am getting “Internal Error”
got this after attempting after a few hours:
Thanks for providing Aadhaar Number for your PAN *******. Your Aadhaar Number will be linked to the respective Folios in the selected Mutual Funds ( Birla Sun Life Mutual Fund, HDFC Mutual Fund, ICICI Prudential Mutual Fund, L&T Mutual Fund, SBI Mutual Fund, TATA Mutual Fund ) after due verification with the information available in your Folio and you will get suitable communication in due course of time.
Dear Sreekanth
Please delete my PAN No from the above post.
Done sir!
How to update aadhar in cams portal if it was enrolled wrong initially
Dear Bharath ..You may try linking with correct Aadhaar number now online, mostly your folios will get updated with correct number.
Kindly do let me know the status..can be useful to other blog readers as well, thank you!
Hi. what about Mutual fund investments of a Company through their current account?
Dear Sankalp..Procedure should be the same for savings/current accounts..
I have tried CAMS but registration failed because I don’t have any MF listed there in their form , so I could not proceed.
Dear Sisir / Sivaram / Nathan,
Looks like there is a temporary tech issue with CAMS server..as this is a new online facility, they might have moved this to a maintenance mode..kindly try after sometime..
Hi Srikanth,
Today I tried to link my Aadhaar card number to my MF investments as per your advice above. But I got error message “PAN verification service failure with Income Tax Department. Please try after some time or proceed with a normal KYC providing all documents”. Could you pls advice what can I do now.
I tried using the CAMS online service for linking Aadhar card but I’m get a PAN card error. Both my PAN and Aadhaar are active.
Dear Nathan..May I know the error message details??
I get a message that unable to connect with income tax site. I also get a series of internal server errors and invalid errors. I’ve been trying since yesterday but no luck connecting despite entering OTP. The CAMS site just times out.
Interesting Article. Would it not differ from company to company.
Thanks Sreekanth for the valuable information.