Mutual Funds can be purchased in the name of children also

Discussion in 'Off-Topic Discussion' started by Sujan Azad Parikh, Feb 1, 2019.

  1. Sujan Azad Parikh

    Sujan Azad Parikh Member

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    Investment can be done in Mutual Funds in the name of children. It is possible to do when the child is as young as possible. Usually, people do not cash in between the investments made in children's names. Generally, the investment done on the children's name is taken out when the children are older and they work. If invested in mutual funds in the name of small children, then a good fund can be prepared in 15 to 20 years. In this investment, that money can be included which people generally give in their gifts.

    How to start investing in mutual funds

    Only a single name for the child can be invested in a mutual fund. In such an investment, the name of the Guardian or the court-appointed Guardian remains as the guardian.
    What documents should

    With the children, age documents are required for the father or the guardian appointed by the court. The child should have a birth certificate for age. If the child has a passport, then it is also valid. This document should be used to start investing in a mutual fund.

    Later if there is more investment in this folio, then there is no need for any kind of documents. But if there is a need to start investing in other mutual fund schemes then this process has to be repeated again. The children bank's account is also be added for this investment in the mutual fund and the bank account of the Guardian is also be added.

    ~Sujan Azad Parikh
     
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