Mutual fund investment on behalf of minor

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

KF Mentor
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.
 
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

KF Mentor
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.
 
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