Understanding Common Account Number (CAN) in Mutual Funds
When investing in mutual funds, it is essential to understand the various components and identifiers used to manage investor accounts. One such important identifier is the Common Account Number (CAN), which plays a crucial role in the seamless and secure management of your mutual fund investments.
What is Common Account Number (CAN)?
The Common Account Number (CAN) is a unique reference number issued to mutual fund investors by a mutual fund utility (MFU) or a similar platform. It serves as a single identifier for an investor's account, simplifying the process of investing in multiple mutual fund schemes.
Key Points about CAN
Identification
The CAN is designed to help mutual fund companies identify and manage individual investor accounts efficiently. This unique number allows the company to track all the investor's holdings, transactions, and account details with ease.
Account Management
Investors can use their CAN for various transactions such as buying or selling mutual fund units, checking balances, and accessing statements. The CAN streamlines the entire investment process, ensuring that all activities are accurate and up-to-date.
Security
The CAN adds an extra layer of security to investor accounts. By linking account activities to the correct individual, it helps prevent unauthorized access and ensures that all transactions are legitimate.
How CAN Works in India
Investors in India can buy mutual funds directly through the manufacturer or through an advisor/fund distributor. Regardless of the route, orders are typically processed through the mutual fund utility (MFU) or a third-party platform such as NSE or BSE. These platforms generate a unique transaction ID (Trx ID) during the onboarding process, which is used for every mutual fund transaction - whether online or offline.
For transactions that use the MFU platform, the unique ID is called the Common Account Number (CAN). Similarly, when using the NSE NMF - II platform, the unique ID is called the Investor Identification Number (IIN).
The Role of MFU in Mutual Fund Transactions
The Mutual Fund Utility (MFU) is an industry body set up by 29 fund houses to facilitate seamless, single-login transactions for investors. The MFU helps ensure that investors can transact for free using a single login and access all their mutual fund schemes through a single account number (CAN).
Getting a CAN is straightforward and straightforward. Once you have registered with the MFU, you can invest across various mutual fund schemes using a single account number. This system allows you to manage your investments of different amounts in different mutual fund schemes with a single online payment, through the MFU website.
The MFU website offers simple and easy-to-use links that allow you to easily manage both regular and direct fund purchases and redemptions. By browsing through the website, you can efficiently handle all your investment-related tasks.
Investing in mutual funds has never been easier with the help of CAN. With a single account number, you can simplify your mutual fund management and enjoy a more streamlined investment experience. Happy investing!