Mutual fund investment on behalf of minor

[rohit_20085]

I want to start investing in Mutual funds on behalf of my 4 months old daughter. Can anyone please help with the details if a separate minor bank account is required or I can invest through my own account? Also, which all MFs/platforms support minor accounts as Groww informed that they don't support minor accounts.
P.S.- I know how to use ChatGPT so genuine advice only please.

 

[amitvicky]

I want to start investing in Mutual funds on behalf of my 4 months old daughter. Can anyone please help with the details if a separate minor bank account is required or I can invest through my own account? Also, which all MFs/platforms support minor accounts as Groww informed that they don't support minor accounts.
P.S.- I know how to use ChatGPT so genuine advice only please.

I had similar question and my financial advisor suggested me to start a sip in my name and make the child as nominee.
Once they are 18+ or so, you can "gift" the accumulated units to the child's account.

 

[rohit_20085]

I had similar question and my financial advisor suggested me to start a sip in my name and make the child as nominee.
Once they are 18+ or so, you can "gift" the accumulated units to the child's account.

Thanks for reply. But at the time of redemption, after child becomes 18+, won't the gain be clubbed in my income & taxed accordingly? in same manner as you can give any amount to your wife but if she earns any income from it, the gain will be clubbed with your income & taxed accordingly & not be treated as her income

 

[amitvicky]

Thanks for reply. But at the time of redemption, after child becomes 18+, won't the gain be clubbed in my income & taxed accordingly? in same manner as you can give any amount to your wife but if she earns any income from it, the gain will be clubbed with your income & taxed accordingly & not be treated as her income

I guess not coz you are "gifting" not selling/redeeming (like transferring a house)property).
Better consult your financial advisor or watch some videos.

 

[The INSANE Trader]

I want to start investing in Mutual funds on behalf of my 4 months old daughter. Can anyone please help with the details if a separate minor bank account is required or I can invest through my own account? Also, which all MFs/platforms support minor accounts as Groww informed that they don't support minor accounts.
P.S.- I know how to use ChatGPT so genuine advice only please.

You can invest in your own name and later transfer the units to your daughter when she turns 18.
And in case of platform kindly check with Zerodha Coin, they are supporting minor accounts.

 

[spanmarc7]

I want to start investing in Mutual funds on behalf of my 4 months old daughter. Can anyone please help with the details if a separate minor bank account is required or I can invest through my own account? Also, which all MFs/platforms support minor accounts as Groww informed that they don't support minor accounts.
P.S.- I know how to use ChatGPT so genuine advice only please.

You need to first take the pan card for minor child and after that bank account needs to be opened for the minor child and then demat account needs to be open with Zerodha. By doing this you can start investing seperately in your child name and this is how i have done.

 

[zacobite]

I want to start investing in Mutual funds on behalf of my 4 months old daughter. Can anyone please help with the details if a separate minor bank account is required or I can invest through my own account? Also, which all MFs/platforms support minor accounts as Groww informed that they don't support minor accounts.
P.S.- I know how to use ChatGPT so genuine advice only please.

Thanks for reply. But at the time of redemption, after child becomes 18+, won't the gain be clubbed in my income & taxed accordingly? in same manner as you can give any amount to your wife but if she earns any income from it, the gain will be clubbed with your income & taxed accordingly & not be treated as her income

Firstly You have to stop all sip before 18 and move everything to your name / withdraw.. Sounds strange I know!! But you cannot allot lakhs of rs to an 18 yr old.. as soon as they turn 18 you cannot do any transactions... Minor account / Mfs are only a mental segregation.. to be broken before 18..After that you can decide how to give to your child basis their maturity / needs / discipline

Slightly different view.