The Significance of ARN Number in Mutual Funds
ARN Code is All About?
Individual intermediaries receive a photo identity card which comprises of the Application Reference Number or ARN, the validity period of the ARN, and the address of the intermediary. Corporates receive a registration letter with ARN code, the validity of ARN code, and name of the corporate, whilst their employees get an EUIN card with the same details.
Well, the line states that- Mutual funds are subject to market risks, but that doesn’t mean one cannot reduce risk by diligence. Therefore, an intermediary is obliged to educate & inform the investor about all the risks involved. Doing this will safeguard the interests of all the parties that are involved in the transaction.
AMFI (Association of Mutual Funds) and SEBI take several measures for ensuring the safety of investors. One of the steps includes the mandatory procurement of ARN code for distributors.
How to get ARN code?
The following process:
- Intermediaries should apply in a systematic form; It is available both online & offline at the offices of CAMS and AMFI.
- Submit your application form along with KYD acknowledgment (Knowing Your Dealer). After applying, the individual should present KYD application form personally.
- The intermediary should submit the NISM certificate copy, PAN card copy, bank account proof, Aadhaar card copy, & two passport size photographs.
- The fees & the documentation will differ for corporates & other entities. Check the details before applying.
Any Benefits of ARN number in mutual funds?
ARN code is important for both the investor and the intermediary. Basically, it’s like an ID of the investor/intermediary. It is used to track down the assets mobilized by the intermediary. Also, you can use it to calculate the brokerage of the intermediary. In short, the intermediary will become eligible to distribute mutual funds only if they have (received) ARN number.
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*Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing.