From today, any investment in mutual funds require mandatory KYC compliance. Earlier, this was mandatory only for investments of Rs.50,000 or above. KYC (Know-Your-Client) identifies each PAN with a person. One has to fill in a form and submit copies of identity proofs at specified locations. This is a one-time procedure. More details can be found at the official site of Association of Mutual Frunds in India AMFI, here.