GETTING YOUR MIN AND PUTTING IT TO USE
Source: timesurmoney
ALTHOUGH QUOTING A MUTUAL FUND IDENTIFICATION NUMBER (MIN) HAS BECOME MANDATORY FOR MUTUAL FUND PURCHASES OF RS 50,000 OR MORE, FROM JANUARY 1, 2007, BARELY 2,000 INVESTORS HAD THEIR MINS IN PLACE AT THE BEGINNING OF THE NEW YEAR. THIS IS A RATHER INSIGNIFICANT NUMBER, CONSIDERING THAT THERE ARE AROUND 2.5 CRORE FOLIO NUMBERS IN EXISTENCE.
THIS MAY BE PARTLY DUE TO THE FACT THAT THE MIN GUIDELINES CAME OUT AS LATE AS DECEMBER 27, 2006, AND INVESTORS HAVE NOT HAD THE TIME TO GO OUT AND GET THEMSELVES MINs.
IT MAY ALSO BE DUE TO THE FACT THAT SOME INVESTORS DO NOT REALISE HOW SIMPLE IT IS TO OBTAIN THIS NUMBER AND HOW ALL PERVADING IT WILL BECOME IN FUTURE. HERE’S AN FAQ ON MIN AND ITS IMPORTANCE.
WHAT IS A MIN? FOR WHAT DO I NEED IT?
A Mutual Fund Identification Number (MIN) is a unique number that is allotted to mutual fund investors. If you plan to make a fresh investment of Rs 50,000 or more in any mutual fund scheme, you must quote your MIN on the application form.
DO ALL MUTUAL FUND INVESTORS REQUIRE A MIN?
At present, those who make fresh investments in any scheme from any fund house require a MIN. If you are investing via a Systematic Investment Plan (SIP), you will need to obtain a MIN even if the SIP was registered prior to January 1, 2007. However, any switches made from existing investments or dividends re-invested do not require quoting of a MIN. Another class of mutual fund investors, who are exempt from furnishing their MIN, are existing investors, irrespective of their current holdings, as long as they do not purchase units worth Rs 50,000 or more.
DO I HAVE TO GET A NEW MIN EACH TIME I INVEST IN UNITS OF MUTUAL FUNDS?
No. Once you acquire a MIN, it can be quoted on all future mutual fund unit purchases that you make, irrespective of which mutual fund house you invest with and which scheme you choose. What’s more, you do not have to mention your MIN, each time you purchase fresh units. Once it is linked to your folio number, the fund house in question will use it in all future account statements. In case you possess multiple folios/accounts with a single mutual fund, you can request them to update the MIN in all your folios/accounts.
SUPPOSE I HOLD A JOINT FOLIO WITH ANOTHER INVESTOR. DO WE RECEIVE A JOINT MIN?
No. In the case of joint holdings, each of the holders should have a MIN of their own, which must be quoted across all their holdings, single or joint.
IF SOMEONE IS MANAGING MY PORTFOLIO FOR ME AND INVESTING ON MY BEHALF BY USING MY POWER OF ATTORNEY (POA), WHOSE MIN MUST BE QUOTED?
In such cases, the person who holds your PoA is required to obtain a separate MIN and quote it along with your own MIN while investing on your behalf.
CAN MINORS APPLY FOR A MIN?
Minors will not be allotted MINs. So, while investing on behalf of a minor, the guardian of the minor must quote his or her MIN in the mutual fund form. However, once no longer a minor, the investor must obtain a MIN of his or her own.
WHAT ARE THE CHARGES THAT MUST BE PAID TO OBTAIN A MIN?
This number can be obtained free of cost, simply by submitting the appropriate form along with certain basic personal documents.
WHERE CAN I GET THE FORM? WHAT DOCUMENTS ARE REQUIRED?
The form can be downloaded from AMFI’s website (www.amfiindia.com) or from the websites of mutual fund houses with whom you plan to invest. Alternatively, mutual fund distributors will guide you about where a physical form can be obtained. You have to submit proof of identity and address, your photograph and a copy of your PAN card along with the form to designated Points of Service (POS) which comprise select branches/ offices of mutual funds, registrars and select branches of banks.
HOW LONG WILL IT TAKE FOR ME TO RECEIVE A MIN ONCE I SUBMIT ALL MY PAPERS?
After checking your documents, you will be allotted a MIN across the counter. Then, your documents will be subjected to a more detailed verification and in case of any discrepancies, the MIN may be cancelled or rejected. You will be informed about the cancellation/rejection of your MIN through a separate communication.
HOW CAN AN NRI OBTAIN A MIN?
An NRI must send the filled in form along with a certified true copy of the passport, certified true copy of the proof of overseas address and permanent address to a representative or distributor who can then obtain the MIN for him. These documents can be attested at the Consulate’s office or overseas branches of scheduled commercial banks registered in India.
Can I apply for a MIN even if I do not plan to invest Rs 50,000 in mutual fund units right away?
Of course you can. It will hold you in good stead for the future.