It is really difficult to handle several mutual funds at the same time that you have different folio numbers and tons of paperwork. The Common Account Number (CAN) makes this easier by combining all your investments with one ID, thus making the process of managing and executing transactions a breeze. Read now to learn what a CAN is, its benefits, and the step-by-step guide on how to get one for a more efficient investment journey.
What Is CAN in Mutual Fund?
CAN in mutual fund known as Common Account Number (CAN) is a single identifier assigned to the investors by the platforms or registries such as MF Utility.
CAN is a single account number issued by MFU, created only once for a unique combination of factors such as number of investors, order of holding, mode of holding, social status, and nominee information, as specified at the time of CAN creation. It allows them to put money in different mutual fund schemes and companies without having to go through different folio numbers.
Apart from simplifying portfolio management by bringing together investor details and transaction history, CAN also makes it easier to carry out transactions. Through this smooth system, mutual fund investing becomes a breeze and hence more attractive for the retail investors.
Role of MFU (Mutual Fund Utilities) Platform
The MFU (Mutual Fund Utilities) platform is essential to the simplification of mutual fund investments in India. It is a centralised, one interface for investors to do transactions across different mutual fund schemes and asset management companies that are supported by the Common Account Number (CAN) for consolidated holdings.
Through MFU, investors can effortlessly make purchases, switches, redemptions, and systematic plans such as SIPs on the same platform, therefore, saving their time and energy. The platform allows users to access their portfolios in real-time, get NAVs, common account statements, and scheme information, in addition to receiving alerts and complaint management.
The MFU, regulated by SEBI and AMFI, provides safety and transparency to the customers, while at the same time, intermediaries are enabled to offer efficient services. It encourages cost savings, convenience, and greater retail participation by making the transactions more accessible and easier.
What Details Does a CAN Hold?
A Common Account Number (CAN) in mutual funds is a single point information system that has both the owner’s basic details and the investment data. This feature facilitates investors with ease of account management of their investment portfolios across different schemes.
The details stored in a CAN include:
- Full name of the investor
- Country of origin
- Residential address
- Contact details
- Tax status
- KYC status
- Income details
- Method of holding (single, joint, or anyone/survivor)
- Guardian details (if applicable)
- Nominee details
- Bank account details
- Depository account details
- Power of Attorney (POA) details
- FATCA declaration
Changes made in any of these details centrally will be reflected in all the mutual fund holdings linked to the CAN.
Benefits of Having a CAN
The following are the major advantages of using a Common Account Number (CAN) for mutual funds:
- A reference number, which is common to all mutual fund investments, is thus a single account number which eliminates confusion and facilitates easy tracking.
- One can use a common transaction form to buy, sell or switch across schemes and fund houses with the help of a single form.
- Payment by cheque, demand draft, or electronic means can be made on a consolidated basis using one form.
- A person can have access to all his/her mutual fund holdings across different asset management companies in a single view.
- Sends alerts, reminders, and notifications for transactions and important deadlines like SIP expiries.
- Allows easy updates to personal details and acts as a centralised platform for managing complaints or queries.
How to Get a CAN: Online vs Offline
A Common Account Number (CAN) can be obtained both offline and online, each having a process that investors can follow.
Online Procedure
- Access the MF Utility (MFU) platform and select the ‘New User’ or sign-up option.
- Enter your personal, bank, and KYC details in the respective electronic format.
- Attach the scanned versions of all the supporting documents, such as identity and address proof.
- Review the details, submit your application, and wait for the verification process. Upon confirmation of registration, CAN will be delivered to you via SMS or email.
Offline Method
- The CAN Registration Form may be downloaded or obtained from an MFU Point of Service (POS), a participating AMC, or the MFU website.
- Fill in the blanks of the form with your personal and bank details and attach the photocopies of relevant documents (e.g., PAN, address proof).
- Submit the completed form and photocopies at the POS or send them by mail to the designated office.
- After the process of verification, the CAN is produced and informed to the applicant.
KYC compliance is mandatory for both parties, along with the provision of the supporting documents. The online option is normally faster and paperless, while the offline method is for those who prefer face-to-face assistance or have limited digital access.
Is CAN Mandatory? Alternatives & Comparison
It is not required for the mutual fund investors in India to have a Common Account Number (CAN). They are still able to open accounts and manage them in different asset management companies (AMCs) using folio numbers, which are unique for each fund house. CAN aims to unify and simplify investments, thus making it more convenient when dealing with multiple funds or AMCs, but its application is optional.
Alternatives to CAN
- Folio Number: Each AMC defines a folio number that specifies an investor’s account with that particular fund house. Different folio numbers should be used for each AMC and scheme.
- Direct Investing Platforms: Investors can use a few different platforms, such as the fund houses’ websites and third-party aggregators, that make investing in mutual funds easier without the need for a CAN.
- Demat Account: Mutual fund units can also be in a dematerialised (demat) account, which can serve as a consolidated record; however, this method is optional.
Comparison
Here is a refined version of the comparison of Common Account Number (CAN), Folio Number, Demat Account, and Direct Investing Platforms:
| Feature | Common Account Number (CAN) | Folio Number | Demat Account | Direct Investing Platform |
| Scope | Across multiple AMCs and schemes | Limited to one AMC and scheme | Can hold units from multiple AMCs & schemes | Across multiple AMCs and schemes |
| Account Management | Single consolidated view of all investments | Separate views per AMC and scheme | Centralised holding like a securities account | Unified portfolio tracking via platform |
| KYC Process | Single KYC covers all linked investments | Separate KYC for each AMC | Uses demat account KYC | Streamlined e-KYC with instant verification |
| Transactions Handling | Single Common Transaction Form | Transactions per folio per AMC | Transactions processed via demat platform | Online transactions, commission-free |
| Necessity & Cost | Optional; simplifies diversification and updates | Mandatory per AMC; standard cost | Optional; may have demat charges | Optional; usually zero commission and low fees |
FAQs
The Common Account Number (CAN) is an identification given by Mutual Fund Utilities (MFU). It is a number that links the investors’ mutual fund investments with different Asset Management Companies (AMCs), thus making the management and transactions easy. CAN lessens the work involved and facilitates accountability. KYC has to be done via MFU by the investors in order to get CAN, which is the key to efficient portfolio tracking and hassle-free investing.
Other methods than the Common Account Number (CAN) to aggregate portfolios can be electronic holding of mutual funds through Demat accounts or using direct investing platforms that offer easy monitoring and handling of investments from several asset management companies.
A CAN comprises pivotal investor particulars that include the name, residential address, contact details, PAN, KYC status, bank account, tax status, mode of holding, nomination, and also guardian or Power of Attorney details, where applicable, for smooth and easy identification across mutual fund schemes.
Yes, when you update your personal details that are linked to your CAN, the changes are automatically reflected in all mutual fund schemes and asset management companies that are linked to that CAN. This not only makes the process more convenient but also saves you the time of individually updating each one.
For an online application of a CAN, the user has to fill out an electronic form and save the required documents through the MFU portal. If you intend to do it offline, fill out the CAN registration form and hand it along with documents at an MFU Point of Service. Both ways necessitate meeting the KYC requirements.
No, a Common Account Number is not required to allocate money into mutual funds. Investors have the liberty of handling their investments through their unique account numbers with the respective asset management companies, even if a Common Account Number can be an easy way for them to have consolidated tracking and smooth transactions.
