MF investment from minor account

[mohankshyam]

Have sbi pahla kadam for minor. Unable to do sip or lumpson for mf from account. Even after adding neft details of mf n activation neft details not showing while making transfer.how others have invested from minor account in mutual fund?

 

[Gaara]

In India, a minor (someone under 18) can't directly invest in mutual funds. But, a guardian (parent or court-appointed) can open an account on the minor's behalf. Here's what you'll need to do:

Documents required:

• Minor's age proof: Birth certificate, school leaving certificate, mark sheet (from recognized board), or passport.
• Proof of relationship between minor and guardian: Birth certificate (if it mentions parents' names) or passport can work for natural guardians (parents).

Process:

1. Choose a mutual fund company: Research different companies and their funds to pick one that aligns with your investment goals for the minor.
2. Account opening: Contact the chosen mutual fund company or an investment advisor. They'll guide you through the application process, which typically involves filling out a form and submitting the required documents.
3. Guardian details: The guardian's KYC (Know Your Customer) compliance and PAN (Permanent Account Number) will be needed.

Things to remember:

• The minor is the sole account holder. Joint accounts with a guardian are not allowed.
• Standing instructions for Systematic Investment Plan (SIP) or Systematic Transfer Plan (STP) can be set up.
• When the minor turns 18, the account needs to be converted to their regular account. This may involve KYC updation and a new bank account linked to the minor themself.

Additional points:

• Consider both pros and cons of investing in a minor before proceeding.
• Explore other investment options for minors like Sukanya Samriddhi Account or Public Provident Fund (PPF).

Here are some resources for further guidance:

• AMFI (Association of Mutual Funds in India) investor corner on minor accounts: Investment on behalf of minors & Change in Status on Minor attaining Majority
• Groww on investing in mutual funds for minors: How to invest in Mutual Fund for Minors?

 

[shashank08]

Have sbi pahla kadam for minor. Unable to do sip or lumpson for mf from account. Even after adding neft details of mf n activation neft details not showing while making transfer.how others have invested from minor account in mutual fund?

Now you can do investment in the name of minor from declared guardian bank account.
Some banks don't allow registration of e-mandate or NEFT etc. from minor's bank account.
For example idfc doesnt allow.
So i started investment using my account for the minor account created for my 1.5 yrs old son.
HDFC minor account allows to register e-mandate etc. So you can look for that account.
If you don't want to go ahead with the hassle of multiple accounts then add declared guardian's account as additional account and start investment from that account.

 

[shashank08]

Now you can do investment in the name of minor from declared guardian bank account.
Some banks don't allow registration of e-mandate or NEFT etc. from minor's bank account.
For example idfc doesnt allow.
So i started investment using my account for the minor account created for my 1.5 yrs old son.
HDFC minor account allows to register e-mandate etc. So you can look for that account.
If you don't want to go ahead with the hassle of multiple accounts then add declared guardian's account as additional account and start investment from that account.

Adding to that.. if you are looking for completely online process for minor MF account opening then you can try Mutual fund utility.
MFU allows opening of minor account with completely online process.

 

[mohankshyam]

Adding to that.. if you are looking for completely online process for minor MF account opening then you can try Mutual fund utility.
MFU allows opening of minor account with completely online process.

MFU allows CAN allotment for minor however problem is with bank account. In this case sbi not allowing sip registration or lumpson

 

[shashank08]

MFU allows CAN allotment for minor however problem is with bank account. In this case sbi not allowing sip registration or lumpson

Yes thats bank problem.. use registered guardian account.. add it as second account and you can start paying from your account (i am considering you are the registered guardian)
SEBI rules allow you to pay from registered guardian bank account for minor kid's MF investments.

 

[REGIUS24]

Adding to that.. if you are looking for completely online process for minor MF account opening then you can try Mutual fund utility.
MFU allows opening of minor account with completely online process.

Dear technofino would you please guide me in investing in mutual funds through my daughters account, i have the following :
1. my savings acccount in HDFC
2. my daughters (kids ADVANTAGE) account in HDFC for sukanya samridhi yojana where i am funding regularly, but it has a lock in period.
3. my daughter is 3 years, she is a special child suffering with a rare form of genetic trouble.
so i want a mutual fund where some amount can be deposited from her account which may be useful for her medical treatment in future and gives some extra returns in long run.
after reading this post i asked my RM in HDFC bank but he is clueless and says one cannot invest in mutual funds from minor's account. instead he suggested me to invest through bank in REGULAR mutual funds, but i am investing in direct funds FROM MY GROWW ACCOUNT .
i need some mutual fund to invest from my daughters account exclusively for her.PLEASE GUIDE. THANK YOU IN ADVANCE.

 

[shashank08]

Dear technofino would you please guide me in investing in mutual funds through my daughters account, i have the following :
1. my savings acccount in HDFC
2. my daughters (kids ADVANTAGE) account in HDFC for sukanya samridhi yojana where i am funding regularly, but it has a lock in period.
3. my daughter is 3 years, she is a special child suffering with a rare form of genetic trouble.
so i want a mutual fund where some amount can be deposited from her account which may be useful for her medical treatment in future and gives some extra returns in long run.
after reading this post i asked my RM in HDFC bank but he is clueless and says one cannot invest in mutual funds from minor's account. instead he suggested me to invest through bank in REGULAR mutual funds, but i am investing in direct funds FROM MY GROWW ACCOUNT .
i need some mutual fund to invest from my daughters account exclusively for her.PLEASE GUIDE. THANK YOU IN ADVANCE.

You may would like to go through this thread.. i have already given my experience with MFU platform where you can start investing in your daughter's name from her hdfc account.
Please go through those posts in this thread and let me know if you have any queries?

 

[hellobois]

Adding to that.. if you are looking for completely online process for minor MF account opening then you can try Mutual fund utility.
MFU allows opening of minor account with completely online process.

Hi bro, can you pls elaborate on that.
I need to open a savings account for my son only for mutual funds. I'm totally confused between HDFC and Kotak minor account. Bank employees are not able to explain the Mutual fund angle and are busy in selling cross products. Pls help.

 

[hellobois]

Ho

Yes thats bank problem.. use registered guardian account.. add it as second account and you can start paying from your account (i am considering you are the registered guardian)
SEBI rules allow you to pay from registered guardian bank account for minor kid's MF investments.

w to get registered guardian bank account. I have savings account in SBI, KOTAK, HDFC, AXIS. Which one of these allow this facility for minor account.
Thanks

 

[shashank08]

Hi bro, can you pls elaborate on that.
I need to open a savings account for my son only for mutual funds. I'm totally confused between HDFC and Kotak minor account. Bank employees are not able to explain the Mutual fund angle and are busy in selling cross products. Pls help.

First question you should ask whether you will be able to invest in DIY manner or you need help from RIA?

If you will be able to invest in DIY manner and if any of the guardian of minor child is KYC registered then you can easily register for minor on Mutual Fund Utility.
Use following link to register for a minor account for mutual fund investments.

MFU (C2)

Prerequisites are:

• Birth certificate mentioning name of minor child with guardian name mentioned in the birth certificate.
• PAN number of the guardian under whom minor account will be opened.
• Bank account in the name of minor which will be registered as primary bank account and all the redemption money will come in this account.
• If minor's bank account doesn't have the facility to register for e-mandate then you can register a second account as well which should be in the name of registered guardian and money can be deducted from this account as well. You will need net banking on this account.

Once you register for eCAN then it will take 24 hours in completion of eCAN and then you can start registering e-mandate and investments as well.

DM me once you have a active e-CAN or you face any issue while registering for eCAN.

 

[shashank08]

Ho

w to get registered guardian bank account. I have savings account in SBI, KOTAK, HDFC, AXIS. Which one of these allow this facility for minor account.
Thanks

whatever is your permanent account on which emandate can be registered.

 

[hellobois]

Thanks a lot bro. I have not registered for eCAN till date9as far as I remember). Can I use my email and mobile number for my kid's registration? Will there be any issue in future. Is there an option to update minor's PAN and mobile after he/she turns 18.
Thanks in advance.

First question you should ask whether you will be able to invest in DIY manner or you need help from RIA?

If you will be able to invest in DIY manner and if any of the guardian of minor child is KYC registered then you can easily register for minor on Mutual Fund Utility.
Use following link to register for a minor account for mutual fund investments.

MFU (C2)

Prerequisites are:

• Birth certificate mentioning name of minor child with guardian name mentioned in the birth certificate.
• PAN number of the guardian under whom minor account will be opened.
• Bank account in the name of minor which will be registered as primary bank account and all the redemption money will come in this account.
• If minor's bank account doesn't have the facility to register for e-mandate then you can register a second account as well which should be in the name of registered guardian and money can be deducted from this account as well. You will need net banking on this account.

Once you register for eCAN then it will take 24 hours in completion of eCAN and then you can start registering e-mandate and investments as well.

DM me once you have a active e-CAN or you face any issue while registering for eCAN.

 

[shashank08]

Thanks a lot bro. I have not registered for eCAN till date9as far as I remember). Can I use my email and mobile number for my kid's registration? Will there be any issue in future. Is there an option to update minor's PAN and mobile after he/she turns 18.
Thanks in advance.

Yes you can use your own mail ID and mobile number for minor's account registration as minor can have mail ID but mobile number in minor's name is difficult to get.

Once minor turns 18 then you need to do minor's KYC as we do for individuals. Now a days KYC option is available online so I believe in far future doing KYC will be much easier and you need to get PAN card before he turns 18.

 

[hellobois]

Yes you can use your own mail ID and mobile number for minor's account registration as minor can have mail ID but mobile number in minor's name is difficult to get.

Once minor turns 18 then you need to do minor's KYC as we do for individuals. Now a days KYC option is available online so I believe in far future doing KYC will be much easier and you need to get PAN card before he turns 18.

Is it possible to get Pan card before 18?

 

[shashank08]

Is it possible to get Pan card before 18?

yes it is possible..