What is CKYC?

What is CKYC?

Central KYC Registry (CKYCR) is a centralized repository of KYC records of customers in the financial sector with uniform KYC norms.

Government of India has authorized the Central Registry of Securitization and Asset Reconstruction and Security interest of India (CERSAI), set up under subsection (1) of Section 20 of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, to act as, and to perform the functions of, the Central KYC Records (CKYC) Registry under the PML Rules 2005, including receiving, storing, safeguarding and retrieving the KYC records in digital form of a “client”, as defined in clause (ha) sub-section (1) of Section 2 of the Prevention of Money Laundering Act, 2002.

As per the new KYC norms, once the customer completes the KYC process with an entity authorized to conduct KYC, the customer will be able to invest in all the financial products including Mutual Funds using the 14 digit KYC Identification Number (KIN) issued by CKYC.

As the mutual fund industry is already having KRAs, as a first step, CKYC is being implemented for “New Individuals” for whom KYC is administered by the Intermediaries, effective 1st Feb. 2017. There will be slight change in the KYC form, which encompasses KYC with KRA as well as CKYC.

What is changing?

AMFI circular has mandated that, with effect from 01-Feb-2017,individual investor who is new to KRA (i.e. a prospective investor whose KYC is not registered or verified in the KRA system) has to complete CKYC process by submitting duly filled & signed CKYC form to register KYC.

Kindly note, PAN is still mandatory for investing in Mutual Funds (except Micro KYC and other PAN Exempt scenarios). If an investor had complied with KRA-KYC and CKYC norms, then he/she will have to update the 14 digit KIN and also mention date of birth in the mutual fund application form. There is no change in terms of the documentary proof submission such as ID Proof and Address Proof for both KRA-KYC and CKYC.

In case of an investor who had got the CKYC reference number through non mutual fund route (outside KRA), he has to additionally be compliant of KRA-KYC as well, by submitting the application form, including IPV (In Person Verification) and PAN.

Reliance Tax Saver (ELSS) Fund

Reliance Tax Saver (ELSS) Fund Performance

Report as on: 19-Jan-2017
Compounded Annualised (Return in %) Absolute (Return in %)
Schemes NAV Launch Date Corpus (in Crs) Since Inception 5 Years 3 Years 2 Years 1 Year 6 Months 3 Months
Reliance Tax Saver (ELSS) Fund – Growth 50.306 21-Sep-05 5870.857 15.316 21.961 27.282 2.196 22.105 5.812 -2.141

SIP Performance:

Returns of Reliance Tax Saver (ELSS) Fund for last 3 Years Returns

Launch Date Nav Date Nav Units No of Investment SIP value as on XIRR
Installments Amount 19-01-2017 (%)
21-09-2005 19-01-2017 50.3061 9,071.27 37 3,70,000 4,56,340 14

Cash Flow:

Nav Date Nav Cumulative Units Cumulative Invested Amount Market Value
01-01-2014 25.573 391.05 10,000 10,000
03-02-2014 23.753 812.04 20,000 19,288
03-03-2014 24.797 1,215.32 30,000 30,136
01-04-2014 28.42 1,567.19 40,000 44,539
02-05-2014 28.973 1,912.34 50,000 55,406
02-06-2014 35.082 2,197.38 60,000 77,089
01-07-2014 38.779 2,455.25 70,000 95,212
01-08-2014 37.436 2,722.38 80,000 1,01,914
01-09-2014 40.27 2,970.70 90,000 1,19,631
01-10-2014 41.864 3,209.56 1,00,000 1,34,366
03-11-2014 44.452 3,434.53 1,10,000 1,52,670
01-12-2014 46.22 3,650.88 1,20,000 1,68,745
01-01-2015 46.975 3,863.76 1,30,000 1,81,501
02-02-2015 49.065 4,067.57 1,40,000 1,99,576
02-03-2015 50.399 4,265.99 1,50,000 2,15,003
01-04-2015 48.931 4,470.36 1,60,000 2,18,737
04-05-2015 47.788 4,679.62 1,70,000 2,23,628
01-06-2015 47.176 4,891.59 1,80,000 2,30,764
01-07-2015 46.419 5,107.02 1,90,000 2,37,061
03-08-2015 47.486 5,317.61 2,00,000 2,52,511
01-09-2015 42.689 5,551.86 2,10,000 2,37,005
01-10-2015 42.476 5,787.29 2,20,000 2,45,822
02-11-2015 44.516 6,011.93 2,30,000 2,67,629
01-12-2015 45.257 6,232.89 2,40,000 2,82,082
01-01-2016 45.608 6,452.15 2,50,000 2,94,269
01-02-2016 41.664 6,692.16 2,60,000 2,78,822
01-03-2016 38.934 6,949.01 2,70,000 2,70,551
01-04-2016 42.97 7,181.73 2,80,000 3,08,596
02-05-2016 43.668 7,410.73 2,90,000 3,23,614
01-06-2016 44.035 7,637.82 3,00,000 3,36,335
01-07-2016 46.781 7,851.58 3,10,000 3,67,308
01-08-2016 48.055 8,059.68 3,20,000 3,87,308
01-09-2016 49.88 8,260.16 3,30,000 4,12,020
03-10-2016 50.714 8,457.34 3,40,000 4,28,906
01-11-2016 51.181 8,652.73 3,50,000 4,42,852
01-12-2016 48.044 8,860.87 3,60,000 4,25,710
02-01-2017 47.53 9,071.27 3,70,000 4,31,154

DSP BlackRock Tax Saver Fund

DSP BlackRock Tax Saver Fund – Product Labelling

DSP BlackRock Tax Saver Fund is a Open Ended Equity Linked Savings Scheme and suitable for investors who are seeking

  • Long-term capital growth with a three-year lock-in.
  • Investment in equity and equity-related securities to form a diversified portfolio

**Investors should consult Save Tax Get Rich advisors if in doubt about whether the product is suitable for them




This Tax Saving fund is among the most consistent performers in its category, having outperformed both the benchmark index and the category average for the most part of the last decade. Strict adherence to processes with a skilled fund manager at the helm has aided its consistency.

INVESCO INDIA TAX PLAN fund prefers to run with a reasonably diversified portfolio of upto 50 large and mid-cap stocks. The fund manager bets on high-growth, capital-efficient businesses backed by quality management.

He is comfortable taking large active positions in high conviction bets in the large-cap space, while the money is spread out thin over the fund’s mid cap picks. With a superior risk-reward profile compared to many of its peers, this fund is a dependable pick in this segment.




HDFC Equity Fund

HDFC Equity Fund is one of the oldest and largest diversified equity fund in the country. It has an established track record of over 22 years, over which Rs.10,000/- invested has grown to ~Rs.4.76 lacs ( ~47 times) at CAGR of ~19.19% as on Dec 30, 2016. While Rs 10,000 invested in NIFTY 500 Index has grown to Rs 0.69 lacs (~7 times) at a CAGR of 9.23%. In this long journey, the Fund has experienced several market cycles and events like Lehman crises, IT meltdown, Asian crises etc.

In the same period, an SIP of Rs 2,000 per month in HDFC Equity Fund would be today over Rs ~1.03 Crs while a similar SIP in NIFTY 500 would be Rs ~0.26 Crs.

Below table shows the calendar year performance of HDFC Equity Fund vs benchmark NSE 500 since inception. It can be observed that the Fund has meaningfully outperformed its benchmark 19 of the 22 times.

This large outperformance and wealth creation is attributed to superior stock selection and disciplined approach to investments. The Fund also has history of consistent dividend track record

It may be noted that these dividends declared are tax free in the hands of the investors regardless of the quantum of dividend.

BNP Paribas Enhanced Arbitrage Fund

BNP Paribas Enhanced Arbitrage Fund is better than the industry liquid, liquid plus, short term and Accrual Funds.

· As we all know the yields have dropped drastically and clients have made money in the recent times from the debt products . The important question to be answered is what from NOW ON .

· If one decided to invest further in any short term or accrual fund in the industry he/she should consider the following.


1. The YTM spread between liquid and short term fund today stand at approx. 20 – 40 bps.

2. As a investor net of expense ( 1.25 industry average ) one would be minimum 100 bps below liquid fund return in their short term or accrual funds from day 1

3. With the recent action by RBI post demonetarization CRR hike and MSS bond issue has taken away the large hope of serial rate cuts in the short term.

4. In the current scenario if one decides to enter into a product with average modified duration at 2.5 years , even with the view of 50 Bps rate cut in the next 6 months the return of short term funds might just match up to liquid fund returns.

5. With customer expectation for superior returns like the recent past , it would not be the right thing to do by investing in short term funds in the industry

6. Moving to Accrual funds with credit portfolio, we are not saying credit default might happen but beware that if yield hardens on a 3 yr AAA rated paper from here it would be more on the AA- and A+ paper. This means low credit portfolio might have high negative MTM impact in case of yield hardening.

7. With global scenario not being so conducive and domestic events not giving 1 year direction for duration based products the best suitable product in the so volatile times like this is BNP Paribas Enhanced Arbitrage Fund

1. No duration risk in the portfolio

2. No credit risk

3. Equity taxation which saves you 15% on your return

4. Even on a liquid fund matching performance scenario the net return difference could 15 % higher because of Equity Taxation.

5. Tax free dividend makes it even more a efficient product

6. Potential ALPHA generation through long short strategy

Fund Performance Comparison:

Report as on January 13, 2017
Simple Annualised % (Point to Point)
Scheme Name 1 Day Rank as per 1 Day 3 Days Rank as per 3 Days 1 Week Rank as per 1 Week YTD Rank YTD Since Inception (P2P)-C
Birla SL Enhanced Arbitrage Fund(G) 12.6982 8 9.3792 9 4.8820 9 2.2815 8 7.0829
BNP Paribas Enhanced Arbitrage Fund-Reg(G) 39.9582 1 21.8367 1 17.6844 1 11.8388 1 14.6948
Edelweiss Arbitrage Fund-Reg(G) 23.0533 3 8.7409 10 5.2887 6 2.3765 7 7.5688
HDFC Arbitrage-WP(G) 13.1342 7 9.7664 8 4.5591 11 2.6595 5 7.4819
ICICI Pru Equity-Arbitrage Fund(G) 7.8167 15 7.5850 12 3.4730 13 1.5156 12 7.9136
IDFC Arbitrage Fund-Reg(G) 9.0982 12 7.2125 14 4.7433 10 2.7074 4 7.3739
JM Arbitrage Adv Fund(G) 7.9273 14 6.8866 15 3.3748 14 0.4638 16 7.6365
Kotak Equity Arbitrage Scheme(G) 4.8937 16 5.0544 17 2.0302 17 0.9210 15 7.7056
Reliance Arbitrage Advantage Fund(G) 11.6770 10 7.7169 11 2.3294 15 1.2486 13 8.4186

Debt Funds Returns Jump High

The benchmark 10-year bond yield has come down sharply after the demonetisation

The demonetisation has injected adrenaline into the debt market. A large number of old `500 and ` 1,000 notes have been deposited in banks. Rough estimates say deposits have crossed the `4.5 lakh crore mark. But the outflow has not happened because of withdrawal restrictions imposed by the RBI. With abundant money already in the bag, banks have started cutting fixed deposits rates. SBI, ICICI Bank, HDFC Bank, IDBI Bank and Kotak Bank have already cut rates and others are expected to follow suit soon. Investors should rush to open fixed deposits if they wish to lock in at the prevailing rates.

Since banks are flush with funds and don’t have much lending opportunity, they have started buying government securities aggressively, resulting in a sudden rise in bond prices. The benchmark 10-yield came down to 6.43% (see chart). The yield on 3-month bonds have also crashed from 6.40% on 8 November to just 5.94% now.

Long-term bonds have seen the highest price appreciation due to the drop in yields. Debt mutual funds holding long-term bonds have shot up 2.8% in the past 10 days since Prime Minister Narendra Modi made the earth shattering announcement (see table). This is what the category normally earns in 3-4 months. Some long-term gilt funds rose more than 3% absolute returns during this period. What should debt fund investors do now? Experts are advising investors not to get into liquid funds and take some accrual based duration funds. Yields are coming down and two-month commercial papers are now quoting between 6.1% and 6.3%. Large reverse repo size indicates that the pressure on yield may continue till the end of the year.

Since the 10-year yield has already came down to 6.43%, does it makes sense to invest in long-term gilt or debt funds now? The general view is that the trend will continue to go down in the short term. The yield may fall further in the short term because of the pending incremental demand and trending down in inflation. Adding fuel to the bond rally is the expected rate cuts by the RBI. Since there is a consensus in the market on this, is the rate cut already priced in? Not fully, says Iyer.“Of the 50 bps cut we are expecting, it seems the market has already priced in the 25 bps cut



Invest Debt Funds Online

Save Tax with ELSS Funds or ULIPs


Tax Savers sometimes think of ELSS funds and ULIPs as alternatives. This is a mistake

Functionally, there is nothing common between ELSS funds and ULIPs. It’s a basic rule of saving to not mix up insurance and investments. ELSS and ULIPs are two different products that serve different purposes. While ULIP is a mix of life insurance and investment offered by life insurance companies, ELSS is an equity fund. Both are eligible tax-saving investments but there the similarity ends.

ELSS have predictable cost, and easily understandable returns and are transparent about how the fund operates and what it invests in. Not so with ULIPs. From the premium paid, the insurer deducts charges towards life insurance (mortality charges), administration expenses and fund management fees. So only the balance amount is invested. ULIPs have high first year charges towards acquisition (including agents commissions). In order to evaluate the return generated by a ULIP and thus compare it with another investment, you need to take into consideration only that portion of the premium that is invested in a fund. This information is not easy to come by.

In a ULIP, the mix of investment and insurance prevents savers from having a clear cost-vs-benefit understanding of either of the two components.

Also, with a ULIP, you have to block your money for long periods of time. So you sacrifice on transparency and liquidity. In theory, ULIPs have a five year lock-in, but since terminating the policy early returns adversely, in effect is a ten to fifteen years commitment.

All the charges, which could be as high as 60 per cent in the first year, begin to taper from the fourth year onwards. So you will have to stick on for at least 10 – 15 years to make sure you get a decent overall return on the investment you have made.

The high costs, difficulty in evaluation, lack of transparency and low liquidity don’t make a ULIP a suitable avenue to put one’s money. It is the agents who benefit most since commissions can go up to 25 per cent. Insurance should never be an investment.

Invest in ELSS Funds for Tax Saving