Mutual fund investments are fast becoming popular in India. As an increasing number of people learn about mutual funds and understand their benefits, there is also a growing inquisitiveness about investing in the name of a minor (that is, a child under 18 years of age). This is because many parents wish to invest for their child’s future in avenues that can generate stable returns. The idea is that the investment grows as the child grows. Mutual funds are one such avenue that is being increasingly preferred as a tool for meeting long-term goals such as children’s future education.
Here, we will explain the possibility, merits, demerits, and also the process of investing in mutual funds on behalf of minors. (more…)