What Is a Minor Mutual Fund Account? (No Jargon)
Guardian folios. Minor PAN. SEBI circulars. Here's what each of them actually means.
You've searched "how to invest for my child" and come back more confused than when you started. Guardian folios. Minor PAN. Circulars. It's a lot of vocabulary for something fairly simple.
The simple version
A minor account is an investment account where your child is the legal owner and you, as parent or guardian, operate it on their behalf until they turn 18.
Your child owns it. You run it. That's the whole idea.
Is it allowed in India?
Yes. Minor mutual fund folios are permitted, with the minor as the sole holder — a minor's folio cannot be jointly held — and a parent or legal guardian representing them.
What you need
- Your child's birth certificate, as proof of age
- Your PAN and Aadhaar
- Your bank account details
- Proof of your relationship to the child
What happens at 18
The folio converts to a regular adult account in their name after a KYC update. If that update isn't done, transactions in the folio stop until it is.
Not a gift. Not a transfer. Wealth they've owned since the day you started.
One folio. Their name. Yours to operate. Theirs to own.
Taru is an AMFI-registered mutual fund distributor. Nothing here is personalised investment advice or a recommendation to buy any particular scheme. Figures are illustrative and based on the assumptions stated above. Mutual fund investments are subject to market risks — read all scheme related documents carefully.
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