What will be the repercussions of not linking Aadhaar with mutual fund?
The mutual funds are gaining popularity with a great speed amongst the investors but the biggest question which is being asked a lot these days is that does all the investors of mutual funds have to link Aadhar to mutual fund profile? And what will happen if they do not link their Aadhaar card? Here is a brief discussion on this topic, explaining the repercussions of not linking the Aadhaar with the mutual fund.
This new rule of linking the Aadhaar with your bank account came into existence sometime before and not is also regulated for the mutual fund portfolios too. This practice has come into existence after the Association of Mutual Funds in India (AMFI) informed all the agencies and distributors of mutual fund houses about this new rule. They also mentioned that no one can open a new mutual fund portfolio after January 1, 2018, if they do not have their Aadhaar cards linked. This practice came into existence after this information reached the ears of the investors and distributors. This Aadhaar linking process has many different reasons behind it and also have many benefits for the investors as well as for the banks. This act is made for maintaining the privacy and security of the investors and so that no fraud can be possibly done. There are many dates given as the last date for this Aadhaar linking process so that more and more people can get aware of it.
There are some online facilities available for the Aadhaar linking process which are launched and managed by the Registrar and transfer (R&T) agent and the Computer Age Management Services (CAMS). They are making sure that common people can easily complete this linking process online without much hustle. The Aadhaar linking process has been made mandatory by the government laws and order so the mutual fund houses and distributors have started to ask their new customers to provide their Aadhaar details at the time of registration only. They are also asking their existing customers to update the Aadhaar details as soon as they can unless the mutual fund services might stop. These are some of the main problems faced by those who are not able to provide their Aadhaar details on time. This process is compulsory for all kinds of investors of mutual funds, either long-term investors or short-term investors.
Those investors who already have their active mutual fund portfolio need to do the Aadhar linking with their account as soon as possible because the mutual fund houses and distributors are making their portfolios inoperative in case of no Aadhaar linked. Those who have their money invested in the mutual funds have no choice then linking the Aadhaar as soon as possible otherwise they can suffer from a bigger loss, this is because the market conditions always keeps on changing and in that case you cannot afford your portfolio to be inoperative for a long time because it can cause a huge loss of money. In order to enjoy the great returns and a successful mutual fund investment, one needs to link the Aadhaar as soon as possible.
There are some timelines given by the government for the successful linking of Aadhaar with mutual fund but the timeline has been changing a few time. It is not recommended to wait for the extreme condition to do this small process of linking as it can increase the risk of losing funds in the market. It is better to link your Aadhaar with your mutual fund portfolio as soon as possible and avoid any kind of loss or penalty.