Minor accounts in FundsIndia

FundsIndia also supports minor accounts for investments in mutual funds. Minor children will need to have their own investment services account to be able to hold mutual fund investments in their name.

Requirements

To open a minor account, the requirements are less than opening a regular account.

The minor can use their guardian's PAN number and KYC registration. They do not need to have their own PAN number.

However, it is important and necessary for the minor to have a bank account in their own name. Also, the bank account's guardian detail must match that of the FundsIndia account's guardian details.

For example, if the bank account is held as 'Minor u/g Mother', then the FundsIndia account will also need to specify the mother as the guardian (not the father).

This is important so that future service requests (such as redemptions or dividend payouts) get processed properly by the AMCs and the bank.

How to open a minor account

Opening a minor account is very similar to opening a regular account. However, please note that the guardian needs to be a regular account holder in FundsIndia before the minor account can be opened. Once the guardian's account is activated, a minor account can be added to the set of accounts by choosing the appropriate investor as the guardian.

The application form and terms documents can be signed by the guardian. Apart from the application forms, only the cancelled cheque leaf (with minor u/g name) pre-printed needs to be sent for account activation.

How to operate account

Once the minor account is activated, investments can be made in their name. The guardian's bank account can be used to transfer money for the purpose of funding the investments. However, please note that any redemption will necessarily go to the minor account linked at the time of account opening.