CAN Number

Mutual Fund Utilities which is also popular as MFU is a shared platform that is used by all Indian AMCs. MFU is quite a beneficial platform for mutual fund investors as it enables them to manage and track their investments through the platform. They can do so by using the CAN service. CAN stands for Common Account Number which an investor needs to register himself on the MFU platform. After that, they can use the platform to track the performance of their investments.

Continue reading the article to know more about CAN numbers and how you can create your CAN number along with other information that you might find helpful.

What is the CAN number?

The CAN which is Common Account Number is a reference number that is issued to the mutual fund investors by MFU (Mutual Funds’ Utility) platform. This platform is a crucial tool for investors because it facilitates and unifies investor holdings from several fund houses into a single, coherent statement. A uniform transaction form provided by the MFU also aids in simplifying transactions in various schemes. An investor must complete the KYC process, which is a one-time task, to receive a CAN.

Documents Required for Registering for CAN

Here we have mentioned the documents that you will require for CAN registration. Make sure that these documents shall be self-attested and submitted under the receptive sections of the CAN registration form appropriately:

  • PAN card
  • Proof of KYC
  • Board Resolution but it is not for individual investors
  • Authorized Signatory List
  • Proof of bank account for bank mandates which are registered under CAN
  • Proof of depository account for depository accounts that are registered under CAN.

How can you obtain a Common Account Number?

You can obtain a Common Account Number in both ways including online and offline. To obtain your CAN follow the steps mentioned below:

  • Firstly you should have a KYC complaint but other than eKYC for Aadhar-based KYC
  • You must be an existing mutual fund investor
  • The bank account that you register on the MFU should be your default bank account in your existing mutual funds.

Online Process

The following are the steps that help you create an e-CAN instantly online but this  facility is provided for individual investors only:

  • Firstly, visit the MFU India website or you can also visit any intermediary portal linked with MFU to register.
  • Then, enter your email ID or mobile number and click on the option of ‘New Form’.
  • Verify the captcha code to get started.
  • After that, You have to select the CAN criteria and then select your Holding Nature from the drop-down menu available with other details.
  • Further, you will be required to fill in all the details under each such as Primary Holder, Bank Accounts, and Nominees tab.
  • After updating all details and uploading the documents, just click on the ‘Submit for eCAN’ option.
  • Once your registration is submitted, you will receive a link to your email if you have to upload any relevant documents.
  • At last, your CAN will be approved and activated once all the document verification is completed.

Offline Process

If you want you can also obtain a CAN through the offline process and the steps are as follows:

  • Firstly, visit the nearest FU-authorized commodity or point of service.
  • There you have to fill out the registration form for CAN.
  • You need to sign the form after filling and attach the self-attested documents along with it.
  • Then Submit the form and documents physically to the service provider available.
  • Once your documents are submitted and verified, your CAN will be generated and intimated to you.

How will you register for KYC to obtain a CAN? 

Here is a stepwise process to complete your KYC registration for obtaining a CAN number:

  • Firstly investors should download the KYC form which is available on AMC’s website or the transfer agent’s website. You can also visit the download option available on the CDSL website.
  • Once you find the KYC form print out the application form for a particular application or a fresh KYC.
  • Then fill in the form by providing the self-assessed copies of four documents that are: Proof of Identity, Proof of Address PAN card, and Photograph.
  • After filling it out, recheck the form and send it to the AMC with which you want to invest or a registered transfer agent as per your preference.

So by following these steps you can easily register for KYC and can get your CAN. The good thing is that there are no fees required for this KYC registration so you can easily do it just by visiting the website.

Why should you create a CAN?

All investors in mutual funds may now follow and manage their investments through a single platform thanks to the MF Utilities (MFU) portal. Once you create your Common Account Number, the MFU will help you with your current investment folios all around the sea of mutual funds you’ve invested in your Common Account Number. This mapping will be based on your PAN information and take your holding pattern and other factors into account.

Once you will receive your Common Account Number, all these will work as defecto storage for the important pieces of information such as:

  • Investor names
  • KYC status
  • Income details
  • Mode of holding
  • Nomination
  • Nationality
  • Tax status
  • Contact details of the primary holder
  • Multiple bank accounts registered at CAN
  • Depository account details
  • Power of attorney if you have
  • Guardian information of the minor applicant
  • FATCA, UBO & OECD related other details.

Benefits of Common Account Number

Once investors create their Common Account Number, the existing folios across the participating Mutual funds which are matching to the CAN criteria will get mapped and thus provide a consolidated view of all their investments in the participating mutual funds.

The main benefit of a common account number is that it helps investors to update changes in one place and thus makes their account maintenance very convenient. CAN provides the facility to the investors to transact in multiple schemes across different Mutual funds participating in MFU just by using a common transaction form and making a single consolidated payment.

If you have a CAN number then it will eliminate the need of filling up an account opening form whenever you want to transact in a new Mutual Fund. Moreover, the duplication of processes and documentation is also eliminated and thus this will reduce administrative trouble for you.

What are the benefits of migrating to a single portal through CAN?

There are a lot of benefits of migrating to a single portal by using a CAN number which is as follows:

  • The Common Account Number or CAN will work as a single reference point for all of your mutual fund investments and thus reduce obscurity.
  • The MFU functions as a Neutral Point of Service (POS) regardless of the transfer agent servicing the mutual fund.
  • Investors will get access to a common transaction form that they can use to transact in different schemes at the same time across all types of mutual funds.
  • This portal also provides a single payment facility to investors who want to do investments with the help of a single, consolidated form.
  • It also gives investors an option to choose from multiple modes of payment including both physical and electronic payment modes.
  • Through this portal, investors can have a consolidated view of their investments in different industries by using their CAN details.
  • Investors will also get alerts, triggers, reminders, notifications, etc for their transactions and also important deadlines such as SIP expiry and others.
  • The MFU also functions as centralized complaint management for any queries and also acts as a tracking system where you can log in complaints across the industry.

How will the existing folios or investments of investors be migrated or linked to the MFU?

Investors’ transition of their current investments to its platform will not include the MF utility website. However, the MFU will begin to link investors’ current folios (across the many types of mutual funds) to their Common Account Number once they have formed one. Based on the investor’s PAN, holding behavior, and other factors, this migration will happen.

The final words

So overall CAN is a single account number that is issued by MFU and can be created only once. There are a lot of benefits of CAN so you should create your CAN and maintain your transaction. Here we have shared the benefits of CAN along with how you can create your CAN. We hope that you found this article helpful and it has helped you in clearing your doubts and queries related to CAN.