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How to open a mutual fund account for minors? A step-by-step guide

Jyoti — Thu, 20 Feb 2025 06:29:55 +0000

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.

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.

Post Office FD Scheme: Deposit Rs 5 lakh, you will get Rs 10,51,175, which means more than double profit

Pravesh Maurya — Thu, 28 Sep 2023 05:28:42 +0000

Post Office FD Scheme: If you deposit money in post office FD for 10 years, you can more than double your amount. At present, interest is available at the rate of 7.5 percent on 5 year FD.

If you are looking for an investment option where your money remains secure and you also get better profits, then FD has always been a good option for this. FD i.e. Fixed Deposit, you will get this option in all the banks. But if you want, this time you can try Post Office FD instead of bank.

Post Office FD is called Post Office Time Deposit. You get the option of FD for 1, 2, 3 and 5 years in the post office. If you deposit money in this for 10 years, you can more than double your amount. At present, interest is available at the rate of 7.5 percent on 5 year FD.

Know how to make double more money

At present, interest is available on post office FD at the rate of 7.5 percent. Suppose you deposit Rs 5 lakh in the post office, then at the rate of 7.5 percent you will get interest of Rs 2,24,974 lakh on it. In this way, in 5 years your amount will become Rs 7,24,974. Now if you deposit it again for 5 more years, then this amount will mature to Rs 10,51,175, which is more than double.

Interest on FD of one to five years

If fixed for 1 year – 6.9% If
fixed for 2 years – 7.0% If
fixed for 3 years – 7.0% If
fixed for 5 years – 7.5%

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This post office scheme or bank FD, which one offers higher returns to senior citizens

Pravesh Maurya — Sat, 25 Feb 2023 07:49:29 +0000

Post office schemes Vs Bank FD: After retirement, every person is worried that he should not have shortage of money. In such a situation, you should start preparing for retirement along with the job.

Where should you invest for retirement fund to get good returns? So this becomes a very difficult question. By the way, banks and government have many types of saving options for senior citizens. But where will you get more profit, it is a matter to think about. Let us know here what is better for you, Bank FD or Post Office Senior Citizen Savings Scheme.

The Senior Citizen Savings Scheme of the Post Office is a great investment option. In this, senior citizens get a strong interest rate. Citizens were getting good returns in this scheme even when banks were offering only up to 6% interest. But since May 2022, the Reserve Bank has continuously increased its repo rate. Only after this many banks are offering up to 8% interest to their senior citizen customers.

SCSS or Bank FD on which is getting more interest

The government had announced in December 2022 that it was increasing the interest rates of the Senior Citizen Savings Scheme to 8%. These rates are for the January-March quarter. At the same time, Axis Bank is offering maximum 8.01% interest rate on FDs of 2 years to 30 months to its senior citizens on FDs of less than Rs 2 crore.

At the same time, interest rate ranging from 3.50% to 7.75% is being given on FDs ranging from 7 days to 10 years. At the same time, State Bank is giving interest rate ranging from 3.50% to 7.00% to senior citizens on FDs of less than Rs 2 crore. HDFC Bank is offering interest ranging from 3.50% to 7.60% to its senior citizens.

Tenure of SCSS vs Bank FD

Talking about the duration of Senior Citizen Saving Scheme, senior citizens can invest money in it for a total of 5 years. In this scheme, you can extend the investment of 5 years for further 3 years. On the other hand, talking about bank FD, you can invest money in it from 7 days to 10 years. On investing in the SCSS scheme, senior citizens get a rebate of Rs 1.5 lakh under Section 80C of Income Tax. Whereas in FD, this exemption is available only on deposits of more than 5 years.

How much can be invested in SCSS vs Bank FD

Presenting the Budget 2023, Finance Minister Nirmala Sitharaman said for the SCSS scheme that its deposit limit has been increased from Rs 15 lakh to Rs 30 lakh. At the same time, the minimum investment limit in the scheme is only Rs 1,000.

At the same time, customers can get bulk FDs of Rs 2 crore or more in the bank according to their needs. In such a situation, if you want to get a strong return in a short time, then the Senior Citizen Saving Scheme of the Post Office is a great option.

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Post Office Issued New FD Rates: Big news! Post Office released new FD rates Today, check new rates here Immediately

Pravesh Maurya — Tue, 20 Dec 2022 11:29:20 +0000

Post Office FD: If you are looking for a safe investment option, then FD can be a better option.

Benefits of Post Office FD

Investing in Post Office FD gives you many benefits. The most important thing is that in this you will get government guarantee along with returns. Here you get the facility of interest on quarterly basis. Investing in an FD at the post office is very easy. You can get FD done in the post office for different tenures including 1, 2, 3 or 5 years.

Indian Post Office Department, Ministry of Communications, Government of India offers fixed deposit accounts that offer attractive interest rates with tenors ranging from 1 year to 5 years. Interest is payable annually, with a minimum deposit amount of Rs 1,000 and no maximum limit.

Post Office Fixed Deposit Rates

deposit period Post Office FD Rates (per annum)
1 year 5.50%
2 years 5.50%
3 year 5.50%
5 years 6.70%

Post Office FD Rate Interest rates are subject to change as per requirement. These interest rates are effective from 1st April 2020.

5 Year Fixed Deposit Rates for Tax Saving Post Office

If you open a Fixed Deposit (FD Account) with the Post Office for a period of 5 years, you will be eligible to claim tax benefits under Section 80C of the Income Tax Act, 1961.

tenure Regular Post Office FD Rates (per annum)
60 months 6.70%

Post Office FD Interest Rates are subject to change as per requirement. These interest rates are effective from 1st April 2020.

Post Office Time Deposit Account

Post Office Fixed Deposit Account (TD) account, also known as Post Office Fixed Deposit (FD) account can be opened with a minimum of Rs 1,000 in multiples of Rs 100 without any limit .

Key Features of Post Office FD Interest Rates

Highest Post Office TD Interest Rate : 6.70% per annum for 5 years tenure
Range of interest rates: 5.50% p.a. to 6.70% p.a.
Rate of interest for tenure of 1 year: 5.50% p.a.
Rate of interest for tenure of 2 years: 5.50% p.a.
Rate of interest for tenure of 3 years: 5.50% p.a.

Who Can Open a Fixed Deposit Account

Fixed Deposit Account can be opened in India Post:

a single adult
Maximum three adults (in case of joint account)
A minor who is more than 10 years of age
A guardian on behalf of a person who is a minor or a person of unsound mind

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Guidelines for Gold: You have also kept gold in the house, See the new guideline, otherwise…

Pravesh Maurya — Sat, 03 Dec 2022 11:28:36 +0000

Guidelines for Gold: Gold is not only a metal but also an emotion for the people of India. It is not only a safe investment but it also adds to the happiness of our families. Buying gold on festivals is considered auspicious.

It is not necessary that everyone has the ability to buy gold but still we get happiness when its price falls. It is also considered useful to overcome the financial challenges of the family in future. As an investment option, gold can be offered in the form of coins, bars, jewelry or paper or in the form of gold exchange-traded funds (Gold ETFs), sovereign gold bonds (SGBs) issued by the Reserve Bank of India and gold mutual funds (Gold MFs), etc.

You can buy through. But do you know the maximum amount of gold a person can hold in India? Even though most Indian households buy and own gold, they should be aware of the legal limits on how much gold they can hold. The Gold Control Act was established in our country in the year 1968.

This law prohibited citizens from holding more than a certain amount of gold. However, this act was abolished in 1990. At present there is no restriction on the quantity of gold in India but the holder must have valid source and documents related to gold.

Separate limits for both men and women

TradeSmart President Vijay Singhania told CNBC-TV18.com that guidelines have been framed for Income Tax officials at the time of seizure of property during an income tax raid. According to these instructions, jewelery or jewelery cannot be confiscated to a certain extent on the basis of gender and marital status of the person.

How many ornaments can you hold?

A married woman can keep gold ornaments up to 500 grams and unmarried women up to 250 grams without papers. Whereas for men, the CBDT has fixed a limit of 100 grams for each male member of the family, irrespective of their marital status. To this extent gold cannot be confiscated even during raids by the Income Tax Department.

This means that if you have valid sources and documents available to you to keep gold, then there is no limit for this, but these rules have been made only to relieve the taxpayers from confiscation of their jewelery during raids.

What are the tax rules on gold?

Determination of tax on gold investment depends on the period of holding, ie, the period of holding by the taxpayer. If gold is held for more than 3 years, it is taxable as Long Term Capital Gain (LTCG) at 20 per cent (excluding education cess and surcharge) and short term capital gain as applicable to the investor. Taxable at tax slab. Gold ETFs/Gold MFs are also taxable like physical gold.

Whereas in case of bonds, if they are held till maturity, they are tax-free. However, capital gains are payable on transactions of physical gold or ETFs or Gold MFs. The bonds are traded in demat form on the exchanges and can be redeemed after the fifth year. If the bond is sold before maturity, it is taxable at 20 per cent.

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Sukanya Samriddhi Yojana: Now parents can open accounts of not two but three daughters, what has changed in the rules?

Pravesh Maurya — Fri, 18 Nov 2022 08:59:56 +0000

Let us tell you that there is no risk in investing in Sukanya Samriddhi Yojana ie SSY. By investing in this scheme, you can improve the future of your daughters. This scheme gives a return of 7.6%. Now under the Sukanya Samriddhi Yojana, three daughters will be able to get the benefit of this scheme.

Sukanya Samriddhi Yojana is a good investment option. This scheme was started in the year 2015. This scheme is a small savings scheme of the Central Government for daughters. Which has been launched under the Beti Bachao-Beti Padhao scheme.

The Modi government at the center is running Sukanya Samriddhi Yojana SSY for the bright future of daughters. Under this, on opening Sukanya account in the name of the daughter and depositing money in it every year, one gets the benefit of a lump sum amount in future.

Sukanya is the best interest rate scheme in small savings scheme. Sukanya Samriddhi Yojana gives you an opportunity to earn handsome returns. Huge funds can be collected by investing in this scheme for higher education, marriage etc of daughters. This is a scheme that gives more returns than FD of the bank. By investing in this scheme, you will be sure about your daughter’s higher education, career and marriage. Investing in it can be a better option for you.

Accounts can be opened in the names of three daughters

Under Sukanya Samriddhi Yojana, the account of only two daughters of the same family is opened. But if twin daughters are born in a family, then under this scheme three accounts can be opened for daughters instead of two. After 18 years, in whose name the account is opened, they can withdraw money for their studies and at the time of need.

The parents investing in this scheme should be credited on the account of the first 2 daughters only.Income TaxExemption was available. But now it has been changed and the exemption has been implemented for the third daughter as well.

Under Sukanya Samriddhi Yojana, this scheme will mature when your daughter turns 21 years old. At the same time, the money deposited in this scheme cannot be withdrawn until the girl child turns 18. Even after 18 years, only 50 percent of the total amount can be withdrawn from this scheme. The full money of the scheme will be available only after the daughter turns 21. In this, you can get the money in lump sum or in installments. In this scheme, money will be available only once in a year. At the same time, you can take money in installments for a maximum of five years.

Can SSY account be closed?

If the account holder dies in Sukanya Samriddhi Yojana, then the account can be closed by showing the death certificate. After this, the amount deposited in the Sukanya Samriddhi Yojana account is given back to the guardian of the girl child along with interest. In other cases, the SSY account can be closed after five years from its opening. This can also be done under many circumstances. For example, it can be discontinued in case of life-threatening diseases. Even after this, if the account is being closed for any other reason, then it can be allowed, but you will get interest on it according to the savings account.

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