<div><em><strong>Sunil Dhawan</strong> on how by making KYC verification online and allowing to invest in mutual funds from other banks, the big step in online investing takes place. </em></div><div> </div><div>Investing in mutual funds is all set to change. ICICI Direct has launched an ‘online platform’, ‘Insta Account’ to let investors buy mutual funds completely online. Online investing in mutual funds through ICICI Direct’s Insta Account brings two aspects upfront– one, what if the investor is non-KYC compliant and secondly, what if investor doesn’t have ICICI bank account. Insta Account precisely addresses these concerns and allows anyone not meeting the above two conditions to buy MF units from the comforts of his home or office. </div><div> </div><div>KYC Compliance: From the ICICI Direct website, clicking on the ‘Insta Account’ link, one can initiate the account opening process. It’s a 3-steps process to open the free Insta Account. </div><div>1.<span class="Apple-tab-span" style="white-space:pre"> </span>One has to submit the Permanent Account Number (PAN) and Date of Birth</div><div>2.<span class="Apple-tab-span" style="white-space:pre"> </span>Verify the name and contact details and generate a one-time password (OTP)</div><div>3.<span class="Apple-tab-span" style="white-space:pre"> </span>Authenticate using the OTP and create User-id and password</div><div> </div><div><strong>Non-KYC compliance:</strong> For those who are still not KYC compliant, the purchase has to wait until one-time KYC formalities are done with. One may have to then download and fill the KYC form. After signing it, along with documentary evidence one has to submit it. There would be an in-person verification before you get KYC compliant and can start investing through Insta Account. </div><div> </div><div><strong>For ICICI Bank account holders:</strong> Post opening an Insta Account, the investor who has an existing ICICI Bank account can start investing instantly. One merely has to link the ICICI savings account by providing the bank branch details including the IFSC code.</div><div> </div><div><strong>What if no ICICI bank account:</strong> The facility is available even for those who don’t have an ICICI bank account. ‘Insta Account’, is currently allowing investors to invest through any of the 11 banks with whom they have tied-up. Some of the banks are SBI, HDFC, Axis, J&K, and YES bank amongst others. One needs to scan and upload copy of a bank cheque. On successful verification the investor can use their internet banking account to make the investment using their ICICI direct Insta Account.</div><div> </div><div><strong>Restriction: </strong>In case one has a trading account of ICICI Direct, use of ‘Insta Account’ is not possible. The trading account of ICICI Direct has always been allowing MF buying. But there is a difference in buying MF units from ICICI Direct and through Insta Account. In Insta Account, one doesn’t have to allocate funds separately for buying as purchase is being done from savings account of any bank. In ICICI Direct trading account, funds initially have to be allocated from savings account. </div><div> </div><div><strong>End Note:</strong> If you wish to buy shares, the trading account of ICICI Direct has always been there, which also allows MF buying. Insta Account is primarily targeting investors who don’t have such account and only wish to buy MF units and are not holding ICICI account. By making the process of buying MF units easy and simple, the reason to not invest for long term goals doesn’t t hold anymore. Choose the right schemes preferably diversified plans based on their long term performance, initiate SIP in them and link them to a long term goal. </div><div> </div>
