Outstation Cheque : If the paying bank account is located in another city, the cheque will have to go through two clearing houses at two different locations.
A cheque issued by any person other than the investor of the mutual fund investment is a third-party cheque. Third-party cheques are not a permitted mode of payment for mutual fund purchases except where: i. a grandparent or parent is making payments on behalf of a minor not exceeding Rs. 50,000; ii. an employer making payment on behalf of employee through payroll deductions; iii. a custodian paying on behalf of Foreign Portfolio Investors (FPIs); and iv. an AMC paying commission to its empanelled distributors in the form of units of mutual fund schemes managed by the AMC.
Investors have the option of investing in mutual funds through cash to the extent of Rs. 50,000 per investor per mutual fund per financial year.
Only resident individuals, sole proprietorships and minors (through their guardians), who are KYC compliant, can make cash investments.
Collection Accounts are maintained to receive investments into schemes from investors.
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