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Planning to invest in MFs? Get your MIN now
Sandeep Shanbhag, Moneycontrol.com
 
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December 29, 2006

From January 1, 2007, if you wish to invest Rs 50,000 or more in any mutual fund scheme, you will have to obtain a special number called Mutual Fund Identification Number. The MIN application form can be downloaded from the AMFI website (www.amfiindia.com) or from the website of the Mutual Fund with whom you invest. You may also approach your distributor for a form.

The documents that you will have to provide are:

(1) Photograph (2) Proof of Identity (3) Proof of Address (4) PAN Card

Thankfully only one MIN would be required across all mutual funds

MIN will be provided absolutely FREE OF COST to the investors.

Investors should obtain the MIN from the Points of Services. To start with, these POS will be the selected branches / offices of mutual funds, registrars and selected branches of banks. The application form for applying for MIN will also be available from these POS.

The AMFI website contains a detailed FAQ list. The following are excerpts for investors to get a bird's eye view.

Comments:

Seeing as it were that it is already the end of December that these guidelines have come out, investors should have been given more time to obtain a MIN for themselves. January 1st with 30th and 31st of December being the weekend is too little time.

Secondly, investors wishing to invest Rs 50,000 or more already supply their PAN, which in itself is a unique identity number. One just wonders why have a separate number when the system of PAN exists. For example, from January 1st, PAN is compulsory for trading in the stock market. A similar requirement could have sufficed.

Perhaps, it is to do with investors' reluctance to obtain a PAN, especially those who are not in the tax net. Many feel that it is compulsory to file tax returns if one obtains a PAN.

In any case, in the interest of preventing money laundering and strengthening the regulatory mechanism, the authorities have come out with the MIN requirement. It is hoped that investors comply with the same and make our markets that much more healthy. No one wants a repeat of the MAPIN debacle.

The writer may be reached at sandeep.shanbhag@moneycontrol.com

For more on mutual funds, log on to www.easymf.com




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