How to invest in mutual funds online for minors

livemint.com:

Mint have mentioned how they benefit from investing early for their children. Anyone under the age of 18 (a minor) can invest in mutual funds with the help of a parent or legal guardian. The minor must be the sole account holder, but since a minor is not allowed to make financial decisions on their own, a parent or guardian can act as the custodian of the minor’s account.

Also, joint holding is not allowed in a minor’s mutual fund folio. The guardian in the mutual fund folio on behalf of the minor must either be a natural guardian (i.e., a parent) or a court-appointed legal guardian. The required documents include proof of relationship with the minor, such as the minor's birth certificate.

Additionally, valid bank proof is required, which can be provided through a cancelled cheque leaf, a bank passbook, or a bank statement with entries not older than 90 days. Make sure that you have these documents handy before getting started with the online process. For transactions in a minor’s mutual fund account, the accepted bank accounts include the minor’s own bank account, a joint account of the minor with a parent or legal guardian, and the parent or legal guardian’s bank account.

For adding funds, the money can come from any of these accounts, provided they are registered in the minor’s folio. For withdrawing funds, the money will be paid out to the minor’s registered bank account or a joint account with the guardian that is registered in the folio. (Refer GFX).

A guardian can invest on behalf of the minor either offline and online. The offline process involves a guardian visiting a nearby asset management company or a registrar and transfer agent (AMC/RTA) with all the required documents. After getting your documents verified