How to Invest in Mutual Funds for a Minor Child in India

Kiddo.Money Editorial · 2 November 2026

You can invest in mutual funds for a child who is under 18. The process involves a parent or legal guardian, a minor folio and a few important documents. Here's how to get started.

Investing for a minor: with or without a PAN

A mutual fund investment for a child under 18 is generally opened as a minor folio. The child is the sole unit holder, while a parent or court-appointed legal guardian operates the folio on the child's behalf until the child becomes an adult.

The key point for parents is that a minor's PAN may not be compulsory for opening a minor folio. A parent's or legal guardian's PAN is mandatory. Edelweiss Mutual Fund states that the minor's PAN is optional. Requirements and online processes can differ between mutual fund houses, so confirm the current checklist with the AMC or platform you choose.

1. Investing for a minor who has a PAN

If your child already has a PAN, keep the PAN details ready along with the guardian's PAN and KYC details. The AMC may ask you to enter the child's PAN as part of the application and complete its verification process.

• Child's PAN and date-of-birth proof.
• Parent's or legal guardian's PAN and completed KYC.
• Proof of relationship, such as the child's birth certificate or passport, or court-appointed guardian documentation where applicable.
• Bank account details accepted by the AMC for the minor folio.

2. Investing for a minor who does not have a PAN

If your child does not have a PAN, you may still be able to open a minor folio. A parent's or legal guardian's PAN is mandatory. Edelweiss Mutual Fund states that the minor's PAN is optional. You should check that the AMC or investment platform you use accepts the application without the child's PAN before you begin.

• Guardian's PAN and completed KYC.
• Child's date-of-birth proof, such as a birth certificate or passport.
• Proof of relationship or court-appointed guardianship, as applicable.
• Bank account details accepted by the AMC for the minor folio.

Do not assume that every AMC follows an identical document checklist or digital process. Ask the chosen fund house which documents it accepts when the minor does not have a PAN.

Documents and details to keep ready

The exact checklist can vary by AMC and platform. Before applying, keep the following information handy:

• Child: full name, date of birth, proof of age and bank account details. Provide the child's PAN if available and requested by the AMC's process.
• Parent or legal guardian: PAN, completed KYC and identity/address details.
• Relationship or guardianship proof: for example, the child's birth certificate or passport; a court-appointed document where the guardian is court-appointed.
• Banking: bank account details and the payment method or mandate accepted by the AMC or platform.

Step 1: Arrange the child's PAN and bank account

A minor can have a PAN, with a parent or legal guardian applying as representative assessee. If you need help, read How to Get a PAN Card for a Minor Child in India.

You can also ask a bank about opening a minor savings account. Banks set their own account-opening and operating requirements, so check the chosen bank's current document list and rules for how the account can be operated.

A child's bank account is important because redemption proceeds from a minor's mutual fund folio must be paid to the minor's verified bank account, including an eligible joint account with the guardian where permitted.

Step 2: Complete the guardian's KYC

The parent or legal guardian opening the minor folio must complete KYC. If your KYC is already completed, check that your details remain current and that the AMC can verify your status.

Whether the minor must separately complete KYC at the time of investment can depend on the AMC's process and applicable requirements. Follow the instructions of the specific mutual fund house rather than assuming every AMC follows the same online flow.

Step 3: Choose an investment route

• AMC website: Visit the mutual fund house's official website and look for its process to invest on behalf of a minor. Confirm that online minor-folio opening and SIP registration are supported.
• MFU: Mutual Fund Utilities offers a common transaction platform for participating mutual funds. Check its current CAN registration process and confirm that the relevant minor-investor onboarding and transaction facility is available for your case. You can review the MFU CAN registration forms and instructions.
• AMFI-registered mutual fund distributor: A distributor can help you understand the documentation and application process. You should still review the scheme information and understand the risks before investing.

Step 4: Open the minor folio

1. Enter the child's details as the investor and the parent's or legal guardian's details as guardian.
2. Submit the child's date-of-birth proof and relationship or guardianship evidence requested.
3. Provide the required PAN and KYC details.
4. Add the child's verified bank account for redemption proceeds.
5. Complete the AMC's declarations, verification and application process.

The minor is the sole unit holder. The guardian is authorised to operate the folio on the child's behalf while the child is a minor.

Step 5: Register the SIP

Once the folio is accepted and the AMC's process allows transactions, select the scheme and complete the SIP registration. You will generally need to choose the amount, frequency, instalment date and an accepted payment mandate.

SEBI's framework permits the investment amount to be paid from the minor's bank account, the parent or legal guardian's bank account, or a qualifying joint account with the parent or legal guardian. Redemption proceeds, however, must be credited to the minor's verified bank account.

Confirm the exact mandate and payment steps with the AMC or platform. A platform may have additional operational checks.

What happens when your child turns 18?

Plan for this well before the birthday. When the minor becomes a major, the guardian's authority to operate the folio ends. The child must complete KYC in their own capacity and submit the AMC's prescribed minor-attaining-majority request, updated bank details and other required documents.

Until the status change is completed, transactions and existing standing instructions, including SIPs, are restricted or suspended under the applicable process. The child should contact the AMC or its registrar to complete the conversion and confirm when transactions can resume.

Tax treatment can differ depending on whose name the investment is held in and the source and nature of the income. Income arising to a minor child may be subject to applicable clubbing provisions, subject to statutory exceptions. Tax rules can change; consult a qualified tax professional for your circumstances.

A final thought

Start with the goal you are investing for, decide who should own the investment, and then follow the relevant AMC or platform process. An SIP is a way to invest regularly; it does not guarantee returns or remove market risk. Review the plan as your child's needs and the time available to the goal change.

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