The mutual fund industry wants us to invest with them. Not a bad thing for us too. However, they have designed their processes that are frustrating, to say the least. They have been designed by people who apparently have worked with the government of India. If one form will do, they will make you fill five.
They come and solicit investments in the name of your minor children. Whilst opening the account, all you need is one simple form. However, once your children attain the legal age of ‘majority’, the processes are designed to screw your happiness. They typical requirement when your child becomes a major, are the following:
- Copy of PAN Card;
- Copy of cheque leaf with his/her name as first named ;
- Proof of date of birth;
- And a fresh KYC form (they just ask you to produce a copy of the acknowledgement of the KYC submitted).
And I never got a communication from HDFC mutual fund, where I had opened an investment account for my children.
I distinctly recall that a couple of years ago, I submitted the fresh PAN data, bank account number etc to the AMC office.
Now, my child wants to redeem. The R&T agent sends a mail demanding the above. How delightful. I have to go through the whole bloody mess all over again.
While opening the account, they must have taken a date of birth on record, for the minor. All they have to do is to match it with a PAN card copy that I submit. And why does one have to self attest the copy of the PAN card? They can simply check it online.
I had stopped investing in to the kids accounts, in the MF for over ten years now. How do they expect me to keep a ‘copy’ of the acknowledgement of the KYC form?
AMFI seems to have designed the harassment process in the certainty that some money will become forgotten, some guardian will die without the the family knowing about the account or some such thing. In the last few years, I have stopped receiving any physical account statements from the mutual fund. It is natural for AMFI to enrich the trade which it represents. And SEBI is unfortunately ignorant of actual ground realities.
OF course, the fault is mine, for trusting some one like HDFC Mutual fund. I should have been alert, gone and sat in their office on the 18th birthday of my children and completed the paperwork. And every month, kept checking online for the balance, NAV etc. Now I am not even sure that the investment record they give will be correct. Can’t blame them though. The investment world is designed to cheat the investor. It is another case of ‘caveat emptor’.