I would appreciate if you could clarify whether minors can invest in a mutual fund or not. I am in a strange situation - my son's maternal grandfather wants to give my son, who is a minor, a sizeable sum of money. Since the money would not be immediately needed by him, I would like to invest it in an equity-based mutual fund. That would allow it to grow considerably over the next 10+ years or so. Is it possible to do so in a manner that allows me to be the guardian for future transactions on behalf of my son?
- Sudhindra Chatterjee
Yes, minors can invest in a mutual fund but only through a guardian. An adult, being a parent or lawful guardian of the minor can hold units of a mutual fund and deal with them on behalf of the minor. You need to furnish the AMC with a proof of age of your son and your capacity to hold and deal the units.