KYC is an acronym for “Know Your Customer”. It is a general term for the process used for identification of a customer whenever he/she opens an account with a financial entity. KYC establishes an investor’s identity & address through relevant supporting documents such as prescribed photo id (e.g., PAN card) and address proof. In order to invest in any mutual fund, an investor needs to be KYC compliant. KYC is a one time exercise.