What is a Common Account Number (CAN)?

Common Account Number (CAN) is a unique identification number or ID that helps you keep track of all the mutual funds you own from different institutions. It is assigned by MFU, a shared mutual fund transaction and tracking platform that is used by all Indian AMCs.

Mutual fund investors can register on the MFU platform to create a Common Account Number (CAN), and this helps them track their investments' progress. This platform is significant for investors since it consolidates and simplifies investor holdings from various fund houses into a single statement.

 

KYC Registration Procedure

To get a CAN, an investor must complete the KYC process. Investors need to fill out the KYC form and present self-attested copies of the following documents:

• Identification proof
• Address Verification
• PAN Card
• Photograph

These Important documents needed for a demat account are the same if you want to transact via a demat account. The filled form is submitted to AMC or a Registered Transfer Agent where one intends to invest.

 

Why Should You Have a Common Account Number?

Mutual fund investors can track and manage their investments on a single platform called The MF Utilities (MFU) platform. The MFU provides the Common Account Number (CAN) that maps the existing investment folios across the various mutual funds invested. This mapping will be based on the PAN number of the investor.

Once the CAN is created, it will include the following important data of the investor:

• Names of Investors
• KYC Status
• Income Details
• Mode of Holding
• Nomination
• Nationality
• Tax Status
• Contact Information of Holders
• Multiple bank accounts registered at the CAN level
• Demat account information
• Power of Attorney, if applicable
• Guardian information for a minor applicant, FATCA, UBO, and OECD relevant information 

 

Advantages of Using Common Account Number (CAN)

The Common Account Number (CAN) helps in reducing ambiguity by serving as a single point of reference for all mutual fund investments. The following are the benefits of creating a Common Account Number (CAN):

• The MFU acts as a neutral point of service (POS) regardless of the transfer agent of the mutual fund.
• Investors will have access to a single payment option for investments via a single consolidated form or a common transaction form. This may be used to transact in many schemes at the same time and across various mutual fund types.
• Investors will have a range of payment options to choose from which includes both physical and electronic modes.
• Investors can get a comprehensive view of their holdings across fund houses by using their CAN information.
• CAN eliminates the need to give a separate bank mandate for every new SIP transaction. CAN will enable the registration of one debit Bank Mandate for multiple SIP registrations.
• It is optimized to send alerts, triggers, reminders, and other notifications to investors for their transactions, as well as important dates such as SIP expiration.
• The MFU will act as a centralized complaint management and monitoring system in case of a complaint. It will log complaints from all around the industry.
• CAN is particularly beneficial for NRIs. They can view, monitor and transact across AMCs from anywhere in the world.
• CAN is cost-effective in the way that it is a common platform and reduces the need to rely on third-party distributors or agents for each fund house.
• Any changes or updates in the investor’s data can be updated across AMCs simply by updating in the CAN.

 

Conclusion

Common Account Number (CAN) has proved to be a valuable tool for mutual fund investors by consolidating and streamlining investments across the industry. Documents needed for opening a  demat account and common account number are also same. Whether you are investing through demat account or directly, CAN simplifies transacting, tracking, and managing mutual fund investments.