MFs cheer finance ministry's move to allow Aadhar-based KYC

Industry players say decision can be key in deepening penetration levels

The Finance Minister's decision to make a slew of policy changes on Friday to give fillip to the economy, also lifted sentiments of the mutual fund (MF) industry. Nirmala Sitharaman said relevant changes will be made to allow MF investments through the Aadhar-based Know Your Customer (KYC)-route.

Industry players said that implementation of Aadhar-based KYC can revive the growth of the Rs 24-trillion MF industry. "This will lead to ease of investment and help the industry to deepen the penetration levels. It can possibly be the biggest reforms th industry has seen in recent years," said Swarup Mohanty, chief executive officer