Your Questions Answered: How can I invest in a mutual fund in my child's name?

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Lewis George, Panaji, Goa As a parent, you want to secure your child's financial future, providing them with the means to achieve their dreams and aspirations. Investing in mutual funds can be a powerful tool to accomplish this goal. Mutual funds offer a diversified portfolio of stocks or bonds, managed by professional fund managers, making them a suitable option for long-term wealth creation.

In India, mutual fund houses allow for investment in the name of children. Early start: Investing early allows you to harness the power of compounding, where the returns earned on your investments generate further returns, accelerating wealth accumulation over time. Disciplined investing: Investing regularly, even in small amounts, instils financial discipline and helps children develop a responsible approach to money management.

Long-term goals: Mutual funds align well with long-term financial goals, such as higher education, career advancement, or starting a business. Professional management: Mutual funds are managed by experienced professionals who make informed investment decisions, reducing the risks associated with individual stock picking. Diversification: Mutual funds offer a diversified mix of securities, mitigating the impact of market fluctuations and reducing overall risk.

You can invest in the name of your children directly through the Asset Management Company (AMC), i.e., a mutual fund house. Typically you can invest in the name of your children offline. Investing in the name of a minor can be done online too.