If you are a housewife or a student and do not have a Permanent Account Number (PAN) issued by the Income Tax Department, you can still invest in mutual funds up to Rs 50,000 in each fund house each year.
The Securities and Exchange Board of India (SEBI) has said that investors can invest up to Rs 50,000 (lump sum or SIP) in each fund house every year without having to quote PAN. Since there are currently 44 fund houses, the total investment without PAN comes to Rs 22 lakh.
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Earlier, investments up to Rs 50,000 across all mutual funds each year was exempt from requirement of PAN. However, after Know-Your-Customer (KYC) norms were made mandatory for all mutual fund investments, PAN was also made compulsory for all individuals except for in SIP investments.
Instead of PAN, investors can use voter ID card, government ID card, card of reputed employer, driving license and passport, etc for KYC compliance.