Your children can also invest in mutual funds, here is the complete process

Mutual Fund: Every parent gives good education to the children. These also include economic things that should be told to children. Children should be told from the beginning about economic self-reliance and proper use of money. If you also want to tell financially important things to the children, then mutual funds can help you in this.

This is how children can invest

• Minors below the age of 18 years can invest in mutual funds.
• Children will have to do this work with the help of their parents.
• The investment will be in the name of the children but the management will be done by the parents. He will sign the transaction. However, they will not be able to take ownership rights of the child.
• This process will continue till the child turns 18.
• As long as the account remains in the category of a minor, any tax on dividends or income will be paid by the parent or guardian.
• All dividends or income taxation in the name of minors will be added to the income of the parents or designated guardians.

What to do when the child turns 18

• Change the account status to ‘Adult’.
• Give this information to the official fund house.

this document will take

• Document showing the relationship between the child and the parent.
• Birth certificate of minor or proof of his age is required.
• The parent or guardian of the minor will have to do KYC as per rules.
• Once the minor becomes an adult, there will be a complete KYC process in his name.

Schemes

• Minors can invest in any mutual fund scheme of adults.
• Some schemes are specially made for children.
• Children’s plans are classified as “Hybrid” or ‘Child Care Plan’ or ‘Children Gift Fund’.

(Investment advice in any fund is not being given by ABP News here. The information given here is for informational purposes only. Mutual fund investments are subject to market risk, read all scheme documents carefully. NAV can fluctuate depending on the factors and forces influencing the security market including fluctuations in interest rates.The past performance of a mutual fund may not necessarily reflect the future performance of the schemes. The Mutual Fund does not guarantee or assure any dividend under any of the schemes and is subject to the availability and adequacy of distributable surplus. Investors are advised to review the prospectus carefully and seek specific legal, tax and scheme You are requested to seek expert professional advice regarding the financial implications of investing/participating in

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