Published Article Details

How an HUF can invest in mutual funds

Posted by: Girija Gadre on Aug 06, 2018, 06.30 AM IST

A Hindu Undivided Family (HUF) consists of persons descended from a common ancestor, including wives and unmarried daughters. The karta is the head and can make investmentsfor the HUF in his own name. 

KYC
The karta is required to fill up the non individual KYC form and complete KYC formalities with the registration agency (KRA).

Documents 
The following documents must be attached with the KYC application: 

  • PAN of HUF
  • Deed of declaration of HUF/ List of coparceners
  • Bank passbook/bank statement in the name of HUF
  • Photograph, proof of identity, proof of address and PAN of karta All documents should be self-attested by the karta.


Mutual fund application form
 
Next, the karta has to fill up the mutual fund application form. Bank details of the HUF, PAN, deed of declaration of HUF or list of coparceners have to be provided. The application should be supported by a cheque for investment amount in favour of the desired scheme. 

Submission

The application form should be submitted to the investor service centre or branch offi ce of the AMC or given to the distributor for processing. Applications received before cutoff timing will be allotted NAV as per Sebi regulations and account statement for the same will be sent to the registered email id for the records of the HUF. 

Points to note 

  1. Karta has to add Hindu Undivided Family within brackets after his name to distinguish it from his personal  investments.
  2. All HUF accounts and folios, including demat accounts can be held and operated only on single holder basis.


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