How to invest in mutual funds in the name of a minor?

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Giving your child a head start on their financial future is one of the greatest gifts you can provide as a parent. Opening a mutual fund account in a child’s name can set them up for long-term growth and financial stability. Though investing on behalf of a minor requires some extra considerations, with the right planning it can be a wise move for their future.

Always remember, investing early and consistently in mutual fund on behalf of your child can help grow wealth exponentially over time through the power of market growth and compounding interest.

In this guide, we will walk you through the process step-by-step, from choosing the right funds to managing the account as your child grows up.

  • Table of contents
  1. Can minor invest in mutual funds?
  2. Who can invest in mutual funds on behalf of a minor
  3. How to invest in mutual fund as minor
  4. Documents required to open account for minor
  5. FAQ

Can minors invest in mutual funds?

Yes, minors can invest in mutual funds in India. In India, a person below the age of 18 years is considered a minor as per the Indian Majority Act of 1875. Minors do not have the legal authority to enter contracts, make financial decisions, open bank accounts, hold investments, or vote independently. Their parents or legal guardians make these decisions on their behalf until they turn 18.

Hence, while the mutual fund investment is made in the name of the minor, the parent/legal guardian will be the registered holder. Fund houses allow investments by minors provided the required documents like birth certificate, KYC, and guardianship proofs are submitted. The minor will take control of the investment on turning 18 years old.

Who can invest in mutual funds on behalf of a minor?

According to mutual fund regulations in India, the following individuals are allowed to invest in mutual funds on behalf of a minor:

  • Parents - Parents (either the father or mother) can invest in mutual funds in the name of their minor children. They can start a Systematic Investment Plan (SIP) or make lump sum investments until the child turns 18 years old.
  • Legal guardians - If the minor child does not have parents, a legal guardian appointed by the court can invest in mutual funds on their behalf. The legal guardian needs to submit the guardianship certificate while opening the mutual fund account.

How to invest in mutual fund as a minor

The process of opening a mutual fund account for a minor is similar to opening a regular mutual fund account. Here are the steps:

  1. Choose the fund house

    Evaluate and compare different funds based on past returns, fund management team, expenses ratio, portfolio holdings, etc.

  2. Select guardian's name

    The mutual fund investment must be in the name of the minor child. However, the guardian will be registered as the registered holder of the units. Choose if the account will be opened in the father's, mother’s, or legal guardian's name.

  3. Fill out the application form

    Fill up the mutual fund application form with the minor's details like name, date of birth, PAN, etc. Provide the guardian's details and relationship with the minor. Submit identity and address proofs for the guardian and minor.

  4. Make payment

    Issue a cheque or demand draft for the initial investment amount in the name of the guardian or the minor child. Most AMCs also allow online payments through net banking or UPI.

  5. Submit forms

    Submit the application form and documents at the nearest branch office of the Asset Management Company (AMC) or their registrar and transfer agents like CAMS, KFIN, etc. If the payment is online, the investment should reflect in a few days.

That's it. The mutual fund account statement will be dispatched to the registered guardian's address within 5-10 working days.

Documents required to open an account for a minor

Here are some key documents required for opening a mutual fund account for a minor:

  • Birth certificate - Provides proof of the child's date of birth
  • KYC documents - Identity and address proof for the guardian and minor child
  • Photographs - Provide passport size photos of the minor and guardian
  • Cancelled cheque - For registering bank details to receive redemption amounts
  • Guardianship certificate - If the parents are not the guardians

Make sure all the documents submitted are self-attested by the guardian.


Investing in mutual funds can be a great way to secure your child's financial future. By starting early and investing consistently, you can take advantage of compounding returns and set your child up for long-term growth. You can choose equity-oriented funds suited for long-term goals and have the required documents in place before investing on behalf of your minor child.


What are the legal requirements for investing in a mutual fund in a minor's name?
Typically, a legal guardian or parent must invest on behalf of the minor. The minor is the primary beneficiary, and the guardian manages the account until the minor reaches adulthood.

Can a minor access and manage the mutual fund account once they turn 18?
Yes, once the minor reaches the age of majority, usually 18, they can gain control of the mutual fund account, and the role of the guardian diminishes.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
This document should not be treated as an endorsement of the views/opinions or as investment advice. This document should not be construed as a research report or a recommendation to buy or sell any security. This document is for information purposes only and should not be construed as a promise on minimum returns or safeguard of capital. This document alone is not sufficient and should not be used for the development or implementation of an investment strategy. The recipient should note and understand that the information provided above may not contain all the material aspects relevant for making an investment decision. Investors are advised to consult their own investment advisor before making any investment decision in light of their risk appetite, investment goals, and horizon. This information is subject to change without any prior notice.