I am 41 years and reside in Hassan. I want to invest upto INR 1 Lakh through equity mutual funds in the name of my 14 year old son. I will invest through SIP. My friend tells me this is not possible. Is this true?
Yes, you can make an investment in any mutual fund scheme of a mutual fund house in the name of a minor child. Your son is the first and sole holder in the folio. Joint holders are not allowed in the folio. You can be the guardian of the folio. You will have to submit the proof of age and date of birth of your son, which is the birth certificate or a copy of the passport. You will have to show proof of relationship with your son (father-son) at the time of making the first investment or while opening the folio. You can register instructions like SIP in the folio held by your minor son, only till he becomes a major. The folio will be frozen for operation by the parent from the date your minor son becomes a major. AMC mutual fund will send a notice to your son at their registered correspondence address advising the minor (son) to submit, on attaining majority , an application form along with prescribed documents to change the status of the folio from `minor' to `major'. KYC Acknowledgment Letter of your son becoming a major should also be provided.