How to invest in mutual funds in the name of minor

Investments may be made in mutual funds on behalf of minors. However, there are certain guidelines investors need to keep in mind. The guardian in the folio should either be a natural guardian (father or mother) or a court-appointed legal guardian. The date of birth of the minor would have to be provided in the application form. Along with the form, a photocopy of supporting documents like birth certificate/passport/school leaving certificate, will have to be provided. You can also do an SIP in your childfs name.

However, one must remember that the mutual fund will honor standing instructions for SIP (systematic investment plan), systematic transfer plan (STP) or systematic withdrawal plan (SWP) in a minor's folio only till the minor becomes a major (ie, 18 years of age), though the instructions may be for a period beyond that date.