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Mutual Fund For Minors: Mutual funds are a popular investment option, which is considered good for achieving various financial goals. Mutual funds can also be used to secure the future of children. Learn here how to open a mutual fund account for a minor.
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Can minors invest in mutual funds?
Anyone below the age of 18 can invest in mutual funds, but with the help of their parents or legal guardian. In this, the minor must be the sole account holder and the guardian acts as the custodian of their account.
Required Documents
The following documents are required to open a mutual fund account:
- Proof of relationship with the minor (birth certificate or passport)
- PAN card of the minor (if applicable)
- Parent’s PAN card and KYC details
- Bank proof (cancelled cheque, passbook or bank statement)
- Photograph of the minor and guardian
How to open a minor’s mutual fund account online?
Step 1: Register for Common Account Number (CAN)
Visit the MF Utilities website and select the ‘Instant CAN Open’ option. Enter the required information and select ‘Fully Electronic’ as the registration type.
Step 2: Enter the details of the minor
Provide the minor’s name, date of birth and contact information. Upload proof of identity (birth certificate or passport).
Step 3: Fill in the parent details
Enter guardian’s name, relationship with the minor and PAN card details. Complete KYC verification.
Step 4: Add bank details
Provide bank account details of minor or joint account with guardian. Upload cancelled cheque or bank statement.
Step 5: Upload documents and submit
Attach scanned copies of the required documents and submit the application. Once the documents are verified, a confirmation email will be sent.
When the minor turns 18, his mutual fund account needs to be updated. For this –
- The child will need to obtain a PAN card and complete KYC compliance.
- Submit a request to the AMC/RTA for updating the account status from minor to adult.
- Provide proof of age, new KYC form and updated bank details.
- After this process, the minor can manage his/her investments independently as an adult.
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