Common account number (CAN) in mutual funds: Definition and registration process

Managing multiple mutual fund investments can be difficult, especially if you hold units across various fund houses or schemes. In India, a Common Account Number (CAN) in mutual funds provides a unifying structure to streamline transactions and statements under a single reference. But what is CAN in mutual funds and how can you get one?

By knowing the role of a CAN, you can ease your account handling, prevent frequent KYC submission, and manage your mutual fund portfolio with ease. Further ahead, we explain why a CAN is important, the procedure for registering, and how it can benefit you as an investor.

• Table of contents

• Understanding the concept
• Why is a CAN important?
• How to get a Common Account Number
• Why should one create a Common Account Number?
• Advantages of Common Account Number
• Documentation basics
• How to get a common account number

Understanding the concept

A Common Account Number (often shortened to CAN) serves as a unique identifier for mutual fund investors, particularly in India via the MF Utility platform. Instead of maintaining distinct folios with each AMC (Asset Management Company), you can consolidate personal details under one master code. Every new investment you make, whether in equity, debt, or hybrid funds, traces back to that one and the same CAN, avoiding duplication of papers.

Essentially, a CAN ties down your mutual fund holding identity to a central location, and hence you avoid duplicate documentation, save time in transactions, and have well-maintained records.

Why is a CAN important?

A CAN is important because it:

• Consolidates folios: Instead of multiple account or folio numbers with AMCs, a CAN consolidates them for you, reducing your administrative load.
• Simplifies transactions: While changing schemes or purchasing new ones, you do not have to re-type personal details. The CAN refers back to your unique identity.
• Reduces repetition: Repeated KYC verification can be minimised, enabling you to invest capital quickly into new mutual funds.
• Streamlines tracking: When you have a diverse portfolio of mutual fund holdings, citing them under one CAN simplifies your overall investments.

Read Also: ARN Number: Meaning, Benefits, and Uses in Mutual Funds

How to get a Common Account Number

Getting a Common Account Number always involves KYC compliance. Typically, you must:

• Complete basic KYC: Provide identity documents (PAN card, proof of address, and a photograph). Many prefer the e-KYC route.
• Submit CAN registration form: Issued by MF Utility or concerned AMC. This form fetches personal details, contact number, and KRA (KYC Registration Agency) ID that is unique, if you already possess one.
• Attach documents: Submit copies of ID, address proofs, bank statements, or cancelled cheques. Some platforms also mandate in-person verification unless you’re using e-KYC.
• Verification: After the authority confirms your credentials, they provide a CAN.
• Connecting: From there on, every mutual fund transaction can use your CAN, avoiding additional KYC processes.

Why should one create a Common Account Number?

• Universal access: Manage and trade several funds from various AMCs under one roof.
• Time efficiency: Reduces duplicate forms per AMC, essential if you invest in many schemes.
• Smooth portfolio tracking: A single aggregator view or statement can show all holdings, so monitoring is easy.
• Less paperwork: Huge re-entry of individual data can be avoided, and it even reduces documentation errors.

Advantages of Common Account Number

• Fewer errors: Reduces the likelihood of incorrect details in different folios, lowering the risk of rejections of transactions.
• One-stop dashboard: Some platforms let you see all CAN-linked funds in a consolidated interface, highlighting total valuations and asset allocations.
• Easier nominee updates: Updating a nominee or changing contact details is simpler once done at the CAN level.
• Swift transactions: If you spot a new mutual fund opportunity, referencing your existing CAN speeds up the purchase, skipping lengthy sign-ups.

Documentation basics

Although rules vary, the basic documents typically include:

• PAN card: Primary ID proof for tax and identity.
• Address proof: Utility bills, Aadhaar, or passport copies for your location confirmation.
• Bank proof: A cancelled cheque or statement verifying your account details for future redemptions.
• KYC confirmation: If you’ve completed KYC with a central registry, provide that reference. Otherwise, you can do KYC simultaneously with CAN registration.

Read Also: How to check mutual fund status with folio number?

How to get a common account number

• Visit MF utility or AMC site: Download or fill the required form.
• Fill in personal/bank details: Provide your existing folio references if you have them.
• Attach proofs: Include ID, address, and bank documents.
• Submit: Hand over or courier them to the designated address, or do it online where e-KYC and digital signatures are allowed.
• Verification: The authority processes your data and verifies it. Once approved, your CAN is generated.

Conclusion

Simplified handling of more than one mutual fund folio is essential for serious investors wishing to steer clear of confusion. A Common Account Number (CAN) in mutual funds serves the purpose, pooling your personal and banking information on diverse AMC products. Being able to have a single code confirming your KYC status accelerates new subscriptions, promotes precise statements, and lessens redundant documentation. Though it's not required for everyone who participates in mutual funds, acquiring a CAN generally proves worthwhile for those interested in cross-AMC diversification or continuous portfolio revision. So, if you plan a broad mutual fund journey, covering equity, debt, or hybrid schemes, embracing a Common Account Number can ease your path, letting you invest with minimal operational friction.

FAQs:

How is a mutual fund CAN number different from a folio number?

A folio number specifies your holdings by a specific AMC or scheme, whereas a CAN is one universal ID across multiple AMCs. For all practical purposes, a folio is more specific, dealing with just one AMC, while the CAN brings all your mutual fund holdings under one reference point.

Is getting a CAN mandatory to invest in mutual funds?

No, it's not necessary. You can continue to open accounts with other AMCs separately. But a CAN makes things easier by taking care of KYC procedures while investing in multiple fund houses.

Should my mutual fund units be in a dematerialised form to get a CAN?

No, demat form is not normally required for a CAN. The CAN is mostly about your KYC and personal information. Whether you hold units in demat or statement of account form is an independent choice.

Will my existing mutual fund investments be automatically migrated to MF Utility once I create a CAN?

Not necessarily. You might need to map or link each folio to the newly created CAN. The procedure usually involves completing a separate linking or consolidation request. Check MF Utility guidelines for exact steps.

Can I update or change the details linked to my CAN?

Yes. If your address, bank account, or other personal details change, you can submit a modification request. The updated data then applies across all mutual fund folios linked to that CAN, saving you from repeated updates at each AMC.

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