What Is Common Account Number (CAN) in Mutual Funds?

Managing multiple mutual fund investments can be challenging, especially if they are with different asset management companies (AMCs). Firstly, you must complete the Know Your Customer (KYC) requirements individually for every single investment. Then, there is the need to keep track of your investments, which involves going through multiple account statements from each AMC separately.

To avoid these hassles and to make mutual fund portfolio management easier and seamless, the mutual fund common account number (CAN) was introduced. If you are a mutual fund investor or plan to invest in one shortly, you must know what CAN is in mutual funds. In this article, we will explore the concept in detail, look into the various advantages that it provides and go through the steps you must follow to get a mutual fund CAN number.

What is CAN in Mutual Funds?

The common account number (CAN) is a unique identification number that is issued when you register on the MF Utility platform.

MF Utility is a mutual fund transaction aggregation platform that allows you to consolidate all your investments and make multiple transactions simultaneously through a common transaction form (CTF). This single-window platform was launched in 2015 by the Association of Mutual Funds of India (AMFI) to make managing mutual fund investments easier.

Once a mutual fund CAN number is allotted to you, all of your folio numbers across all participating AMCs will be automatically mapped to it. This makes monitoring and tracking easier since you get a consolidated view of all your mutual fund investments in one place.

The mutual fund common account number is designed to hold critical information, such as:

• Full name
• Nationality
• Address and other contact details
• Tax Status
• Details of the guardian (in case of a minor)
• KYC status
• Income Details
• Mode of holding mutual fund investments
• Nomination details
• Bank account details
• Depository account details
• Power of Attorney (POA) details
• FATCA details

At any point in time, you can update any of the above details using the common transaction form. Whenever you change any of these details, they are updated across all mutual fund AMCs.

Advantages of Getting a Common Account Number

Now that you know what CAN is in mutual funds, let us look at some of the benefits that you get to enjoy when you get a common account number.

• Simplified Investments 

Once you have a mutual fund CAN, you can use the common transaction form to invest in mutual funds across AMCs through a single consolidated payment.

• Reduction in Paperwork

With a mutual fund common account number, you do not need to fill out an account opening form or complete KYC norms whenever you invest in an MF scheme. By eliminating paperwork and other documentation, the CAN significantly reduce time and effort.

• Seamless Transactions

Using the CAN, you can execute multiple transactions, such as buying, selling and switching funds across AMCs, using a single form (CTF). This is highly beneficial since you bypass the need to interact with individual fund houses separately.

• Faster Processing 

Since all your personal, banking and investment-related details are already registered, the mutual fund common account number improves efficiency and reduces delays by ensuring that your transactions are processed quickly.

• Consolidated Portfolio Tracking 

By logging into the MF Utility using your mutual fund common account number, you can get a consolidated view of all mutual fund holdings across AMCs in one place. This makes it easier for you to monitor your portfolio and make informed investment decisions accordingly.

How to Get a Common Account Number?

Applying for a mutual fund common account number is straightforward. Here is a quick overview of the steps you need to follow to get a CAN allotted to you.

• Step 1: Visit the official website of MF Utilities.
• Step 2: Click on the icon on the top right corner of the homepage and then on the ‘Signup’ option.
• Step 3: Enter your mobile number or email ID in the field and click ‘New Form’.
• Step 4: On the new webpage, you will find 6 sections: CAN criteria, primary holder, depository details, bank accounts, nominees and proof upload.
• Step 5: Click on each section and fill in the mandatory fields.
• Step 6: Once you have filled in all the details, click on the Proof Upload section.
• Step 7: Upload self-attested scanned copies of all the required documents as per the listed requirements.
• Step 8: Click ‘Submit for eCAN’.

Your request for an electronic mutual fund CAN number will be placed. Once your application is successfully verified, a common account number will be allotted. You can then use this number to track and manage all your mutual fund investments in one place.

Conclusion

With this, you must now be well aware of what CAN is in mutual funds. The common account number simplifies mutual fund investing by providing single-window access to all your funds across multiple AMCs. By getting a mutual fund CAN number, you can streamline the MF investment process, reduce paperwork by making multiple transactions with a single form and keep track of your entire portfolio. If you are a mutual fund investor, consider applying for a CAN today to make your investment experience seamless and easy.

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