I want to invest in the name of my two children. Kindly advise me on how to go about that.
One can invest in any mutual fund one likes and that can also be done in the name of your children. The only thing which you have to ensure is that while the child is a minor, you have to invest in his/her name. Till the child attains majority and there is any income which, if you want to accumulate for your child, then you should not go for dividend plan. If you do so, then there would not be any income.
Our tax law states is that if there is an investment in the name of a child and there is an income and one has to consume it, then that income would be added to your income. You also have to open a bank account and you have to operate it until the child becomes a major.
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