New KYC Validation process - how to check KYC status and the validation process

Step -1 How to check KYC Status? Visit CVL KRA website : https://cvlkra.com Enter your Pan number & Submit.

You will see status similar to image below, focus on 3 columns: Column 1: KRA Column 2: KYC Status Column 6: Modity Status Importantly check last two Columns (2 & 6) "If your KYC status is validated, then you do not need to take any further action."

If your KYC status is "KYC REGISTERED - New KYC," then you are required to undergo KYC validation. It is important to note the following: - Verify the KRA name, such as CAMS, Karvy, CVL, NDML, or Dotex.

If the status of your KYC is showing as "Hold" as shown in the two attachments below, then you will need to undergo a Re-KYC process.

Step 2 How to validate KYC in different KRA? Start With CVL KRA

Email and Mobile Validation Process for Validate KYC--- ON CVL KRA------- Step for Mobile and Email ID validation (Applicable If KYC made by Aadhar Only) https://validate.cvlindia.com/CVLKRAVerification_V1/… 1-First Enter the Pan Number 2-Direct Click on Submit 3-Enter Both OTP

4-Direct Click on “Submit and Exit”

5-Validation Done

In certain instances, it may be necessary to proceed with Aadhar validation. In such cases, the first step is to download the M Aadhar from the official Aadhar website.

Link for downloading the Mask Aadhar below. https://myaadhaar.uidai.gov.in/genricDownloadAadhaar… Once the Aadhar is downloaded, you can proceed with the Aadhar validation by clicking on the appropriate option and uploading the Aadhar document.

In some cases, you may notice a mismatch in the address or encounter other issues. However, there is no need to worry. After completing the entire process, you may find that your KYC status will be displayed as "KYC Registered." For this you can talk to AMC or KRA

How to validate KYC on KarvyKRA? To validate KYC on KARVY KRA, please click on the link provided below. https://karvykra.com/KYC_Validation/Default.aspx… 1-First Enter the Pan Number 2-Direct Click on Submit 3-Enter Both OTP 4-Direct Click on “Submit and Exit” 5-Validation Done

Once your contact details are updated, your KYC will be validated. If your KYC still shows as "KYC registered," you will need to complete Aadhar validation using the link provided below.

The process is similar to CVL - You will need to download a masked Aadhar from the website and upload it. https://mfs.kfintech.com/Investor/General/ValidateKYC/… After completing the above steps, You can check your KYC status again. If it still shows as "under process," please check again after 3 days.

How to validate KYC on CAMSKRA? Link to modify KYC Registered status to KYC Validated. Choose EAdhaar Option, fill basic details & upload Eadhaar of investor.

click on this link : https://camskra.com/PanDetailsUpdate.aspx

The process is similar to CVL - you will need to download a masked Aadhar from the website and upload it.

After completing the above steps, you can check your KYC status again. If it still shows as "under process," please check again after 3 days.

Please note that if both of your contact details are missing in CAMS, you will not be able to update them online. However, in CAMS, CVL, and Karvy KRA, there is an option to update contact details physically. (Applicable If KYC made by Aadhar Only)

How to validate KYC In NDML KRA? KYC Validation Links ON NDML KRA------

https://kra.ndml.in/ClientInitiatedKYC-webApp/#/ClientinitiatedKYC

For example, in your KYC status, it shows that your KYC is registered and the documents on file are a driver's license or voter ID. If you wish to update your KYC information with your Aadhar card, you will need to complete a Re-KYC process.

Many stockbrokers offer an online update KYC option, allowing you to easily complete the re-KYC process directly from the trading platform. Additionally, numerous AMCs now provide an online KYC modification or re-KYC option for added convenience. Note :Download Digilocker app

To complete the physical KYC process, please follow the steps outlined below: 1. Download the KYC form from the AMC website. 2. Download your M Aadhar card from the Aadhar website.

Required Documents for KYC:

1. Self-attested PAN card. 2. Self-attested Aadhar card (with masked Aadhar number). 3. One passport-sized photo. It is essential to have these documents ready in order to successfully complete the KYC process. please carry original proof.

Disclaimer : All information is only for knowledge purposes only Mutual funds are subject to market risk, read all documents carefully. Please consult SEBI Registered RIA & AMFI Registered MFD .

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How much gain is required to recoup a loss? How to manage risk?

Most of us think we are agressive investors because we all want best returns.

We see agressive funds deliver high historical returns but these are at the end of a good cycle

These decisions happen in hindsight and at the peak of good times. We regret when cycle turns, which it normally does.

The above chart shows that the % gains needed is always greater than the % loss, just to be even & break even.

(if a portfolio has dropped by 60% then a 150% gain is required to Break Even )

The best way to handle market drawdown is through Asset Allocation strategy.

AA is the process of diversifying across different types of negatively correlated investments and determining how much % to invest in each of them. 

This is done scientifically using investor's risk tolerance score, investment goals, and market conditions. 

This helps in participating when markets fall and preserve profits when markets zoom

Whenever everyone is gripped by Greed or FOMA- Fear of Missing Out- remember Asset Allocation

Action Bias leading to Lower returns

1.  Seen people pressing elevator button despite having already pressed?
2. Noticed people honking their horns repeatedly when the traffic signal is still red?
3. Come across people who keep tapping their screens when phone takes long to respond?

We tend to do things despite knowing that they might not make a difference to the situation.

Action Bias makes us feel good to be in control, we equate action = progress 

Doing nothing makes us feel miserable and lazy, leading to Action

The biggest challenge for long-term investing is urge to control action during volatile times

We risk of missing out on few best days and Significant returns come in those few days

If you did not do anything you would have got annualised return of 14% as per below chart

the original article appeared here

No Need to Panic during market corrections

 Consider Practical and actionable aspects during corrections to take advantage

Most of us as investors know that Volatility and corrections are part of the market

However when the real correction happens, we not only forget this wisdom and but also get nervous & panic. In that state of mind we worry about unknown and loose focus on the useful and profitable aspects. Every market correction was followed by a recovery.

Corrections are normal

we have seen 6 times Nifty correct by 15% or more over past 15 years

Highest was 60% Jan to October 2008

Lowest correction was 15% Aug to October 2018

Longest Correction was Nov 2010 to Dec 2011

Shortest correction was Feb to March 2020

This is known only in hindsight but unfortuanately most investors try to predict the duration of the correction or the depth, this often leads to frustration and anxiety as no once can predict these events. Instead it will be useful to take advantage by focusing on investing more at these times as corrections will end and markets will bounce.

The Real Drama is not in the index

In 2021 while Nifty500 was up 30.2%,  average return of the top 25 stocks was 244%

average return of the bottom 25 stocks was -33%

in 2018 Nifty500 was down 3.4% (-), average return of top 25 stocks was +49%

average return of the bottom 25 stocks was -68%

after the correction phase, the returns in the next 12 months of the index tend to be very healthy.

Do no get perturbed, it is impossible to predict the duration and extent of the correction. It is best to use systematic approach to investing , continue your SIP and increase allocation to equity.

This is brief summary of an article written by Harshad Patwardhan for ET Wealth October 3-9, 2022

Why is my mutual fund not in the best performing category?

 Who does not want to invest in only the best performing funds?

That’s why all portfolios look the same, we look at historical data and invest based on what is glorified in the media.

As a result, all our portfolios will carry the top performers of the recent past or some legacy funds which would have topped during a previous era.

 Most investors choose funds by looking at the top 5 funds based on past 3 years return. This could be distorted due to a one-off great year, or a big risk that worked for the fund (but could have failed).

The top performing funds are based on past performance. We can no way assume their performance would continue into the future.

 So how do you choose a fund?

1.      Check if the fund performance has been in the 1^st 2 quartile, meaning in the first 50% in 7 out of past 10 years.
2.    Avoid flash in the pan performance funds
3.    No matter how hard you try, your fund is not going to remain in the toppers list year after year (see chart above)
4.    A fund manager may take a view in a certain market condition, there are chances he can go wrong even with the best experience.
5.     There can be times when a fund managers decision takes time to work, during which the fund may temporarily underperform and then start doing well.
6.    When the call works right, the fund will be rewarded with top performance, but if you had hoped to another top fund during the underperformance, you would miss on the rally in both the funds
7.   Top performing funds will lose its charm soon enough and can underperform in the next cycle. Remember markets are cyclical and no one stays at the top.

That’s why it is said the quest for the best performing fund is futile.

Instead follow a disciplined process and rebalance periodically.

If you see the data above, no best performing fund has remained on top the very next year

Systematically we can not predict who will be next winner, even if we get it right, it is just fluke and it will again change next qtr

Transforming - to +

 

An investor has seen -14% and +20% also, if he stayed invested he would converted - to + 

Making money is very simple, it needs discipline of staying invested in market 

and staying away from distraction of market

Continue your SIP specially when past returns are low as this will lead to + results in future

Why Asset Allocation & why Rebalance ?

The most imporant key to successful investing is asset allocation

As you can see from the chart below, winners keep changing and no one can predict which asset class will do well in the future, so be invested in all the asset class and rebalance regularly

Rebalance by moving funds from assets that have performed very well to those that have under performed 

Staying in the game during Volatility and Riskon

 

Whenever there is fear or volatility in the markets, many investors pause or stop SIP due to fear taking over rational thinking. They fear market could fall further and they may suffer more losses. However, they must realise that volatility and temporary fall in value is what they signed up for when they got into equity as an investment vehicle. 

Allowing emotions to take over has serious cost to long term wealth creation and overall returns suffer. When at the very time we are supposed to increase our SIP to take advantage of discount sale, our human biases of loss aversion will make us blind towards rational view. (see table) The growth rate of uninterrupted SIPs continues to deliver better results compared to the ones that are paused and restarted. Besides, it also helps to be on track from a goal-based investment perspective.

the Original chart appeared here in this article of livemint