Invest in mutual funds directly using a minor account
One of the best ways to teach your child about the basics of money is to get them involved early. This is because we learn some of our most important money lessons when we are young—lessons that stick with us for life.
This is why we made it easy for you to invest together with your kids by making the minor account opening process online.
As a guardian, you have full control over your child’s Zerodha account. You can buy stocks, mutual funds, exchange-traded funds, government bonds, and sovereign gold bonds on their behalf, and then gift these investments to them. Intraday and F&O trading are not allowed in minor accounts.
Until now, it was not possible to directly invest in mutual funds in your child’s name. You had to purchase mutual funds in your account and then do an off-market to the minor’s demat account, resulting in a broken experience.
We’ve now simplified this by allowing you to invest directly in mutual funds using a minor account on Coin, and you can also set up SIPs with ease.
How to invest in mutual funds using minor accounts?
To invest in mutual funds, you need to log in to Coin using the login credentials of your kid’s Zerodha account. We have published a video with a detailed walkthrough of the investment process.
How to open a minor Zerodha account?
You can open a Zerodha account in your kid’s name by visiting: https://signup.zerodha.com/minor
You can watch this video for a step-by-step guide on the minor account opening process.
Hdfc bank is not offering any debit card . So no option of UPI mandate or payment. Kindly clarify
..should we invest in mf
1) open minor zerodha account and pay via
parents bank account account
Or
2) open minor zerodha account and pay via child Bank account…. And the possible way to do this.
If option 2 is possible, which bank allows such minor transaction..
Thanks .
I opened 2 Minor account but while setting up SIP via IDFC Bank I was told mandate for minor account is not allowed and zerodha only allows online mandates.
Also one of minor who is below 10 years I purchased 2 MF and zerodha says account cannot be verified and in coin its showing payment sent to AMC.
while publishing any videos just dont give high level views give some insight to it as well. Minor accounts does not have any kind of transaction facility at SBI and for IDFC its not allowing to set up Mandate.
Hi,
Kindly clarify if ETF and individual stocks can be purchased in Minor’s account. We know that Mutual funds can be purchased but it is not clear if ETFs and stocks can be purchased or not. Please let us know, thanks.
Hi Ravi, minors cannot by shares or ETFs directly in their account. As a guardian, you can invest in your account and then gift these to the minor. Here’s how you can gift securities.
HI,
MY DAUGHTER’S AGE IS 3 YEARS & I WANT TO OPEN ACCOUNT, BUT THE PROBLEM IS THAT THE BANK IS NOT GOING TO OFFER DEBIT CARD SO I CANT ACTIVATE UPI/NET BANKING, HOW CAN I BUY MUTUAL FUNDS DIRECTLY THEN? SUGGEST AN ALTERNATIVE, IF AVAILABLE.
Hi,
I have account of my son who is minor in Zerodha but not able create mandate through IDFC First bank and the same is getting rejected. Plz guide
Hi Rakesh, we’re sorry about this. Could you please create a ticket on: https://support.zerodha.com/ with details of the issue, so we can have this resolved at the earliest?
Hi, my younger brother he is 14 yrs old and I’m 23 so , can I able to start minor account in my brother name, or it only for child ( son & daughter)
Hi Vishnu, you can open a minor account in his name as a guardian. Since in this case guardian isn’t father or a mother, you will need a legalguardian letter to open an account. Please check out the link shared in post to know the full account opening process,
I have already having registered mail id and mobile no link to my ZERODHA account.
Whether I can use same m no and email id for my 2 minor kids.
Whether PAN of minor is required to open minor account
Hi Shashikant, you can use the same phone number and email ID to oepn minor accounts. You will need PAN of minor to open the account.
We have been trying to open a zerodha account for our son but have still not received email with login credentials.
Hi Rahul, sorry to hear this. Please create a ticket at support.zerodha.com, so we can check and have this resolved at the earliest.
Hi sir PAN card can be obtained in the name of minor 5 year child too.
most of banks are not allowed UPI, Net banking or any option for online payment for minors (below 15) then how can do SIP on Children name if age is below 15? . Please suggest any alternate way or suggest bank name if allow UPI below 15 age
I want to hv SIP for myself, can any1 guide me..how to do it on zerodha
Hi Kiran, we’ve explained the process for settin-up SIP on Coin here.
Good
I have no idea mutual fund,give information ideas about MF
Hi Uma, you can learn all about mutual funds on Varsity.
August 16,24 12.55 very goodbye muchual fund for our chid future
VERY GOOD BY MUCHAL FUND….FOR OUR CHID FUTURE…
I am willing to open an account for my son. Is it easily posible…?
Yes, Manoj. You can easily open an account online, please out the video shared in post for the process.
My child is 10Yrs old.. He dont have a PAN, is it possible to open MINOR Account? Please let me know.
Hi Santosh, you will have to get a PAN card in his name to open a minor account.
How to buy coin n bonds?
Can we buy stocks as well directly from Minors account ?
Hi Ashish, a minor cannot invest directly, you will have to invest in your account and then transfer stocks to the minor account. More details here.
Do you have swp facility from funds thru zerodha. I have demat account with you HA3749 in kite. But due to lack of swp facility, I could not invest in coin.
Hi Snehansu, for investment in mutual funds, the payment has to be made directly from your bank account. Funds in your trading account cannot be used. We do offer SWP facility on Coin, you can check more details on how to set up SWP here.
I wanted to start sip.can you guys pls help
Sir,
I tried to open a minor demat account and almost completed all the formalities but still it is not completed.
It was a issue of either clear scan upload or parent proof, whereas Aadhar card is all about that.
Pls look in this matter, I am still most interested in zeerodha.
Hi Praveen, we’re sorry about this. Could you please create a ticket on: https://support.zerodha.com/ with details of the issue, so we can have this resolved at the earliest?
Zerodha is an investor friendly Platform where investments in shares market are so simple and informative.
Thanks for your kind words 🙂
Hello,
I wanted to start SIP. Can you guys please help.
Hi Sameer, we’ve explained the process for setting-up SIP here.
Hi Shubham,
But banks create joint accounts in case of minors. Is there a way to use the parent’s bank account to create a mandate?
Thanks
Hi Gaj, currently this is not possible. Hoever, exchanges are working on allowing making payments from account of guardian. We’ll let you know once this is available.
Is there any thing new or different than opening a kids savings account in Bank ?
Same KYC to be completed in name of either parents and open a either demat account, post office account, or this mutual fund account.
Could not understand the logic and benefits of opening it in child name – other than the piece of education that it’s harping upon!!
In hindi language video
3 weeks before I am opened Account with my NRI A/C number 500 something I payed but till the day I don’t receive any confirmation from you and amount also not credited back .
Account opening charge and quarterly charge waved or not for minor?
Hi, there is no account opening charge and AMC for minor accounts.
Great initiative. However most of banks are not allowed UPI for minors (below 15) then how can do SIP on Children name if age is below 15? . Please suggest any alternate way or suggest bank name if allow UPI below 15 age
Happy independence day
Your service is worst you blocked my account since two years.
Thanks
Sir, excellent service you are providing and also very much needed your support, guidance.Thanks for the same
Sir my son has below 5 year old and has zerodha account but Bank can’t provide atm , mobile banking, net banking ,UPI and Atm then how can purchase mutual fund and create sip and mandate. Please guide me or else allowed me purchase my account that’s guardian account
Can I open minor account in the name of my grandson who is a US Citizen pl reply
Hi Sivasamy, yes, you can open a minor-NRI account. We’ve explained the process here.
Great initiatives by Zerodha.Zerodha is a great stock broking,asset management firm.I have excellent trust in Zerodha. Thanks.
My kid has a minor account with SBI with me as the guardian. I am however unable to create an e-mandate. It keeps failing every time. I checked with SBI, and they say it’s not an issue on their side.
Does NACH/NCPI not allow joint accounts to create e-mandates?
Hi Gaj, some banks do not allow eMandates to be created from joint bank accounts.
it is possible to create minor’s PAN card?
How taxation works
Hi Ram, a minor can earn only two kinds of income i.e. capital gains and dividend income. This income is clubbed with the income of the higher-earning parent, and they will have to bear the entire tax liability on the same. You can learn more here.
What is the pross minor account open
Hi Mukesh, please check out the video linked in the main post.
I am grandpa of minors , How can I open a minor Demate account and invest in mutual fund, shares for minors.Pl.guid me.
H Surendra, we’ve explained the process in the videos linked in the post above.
Most of the banks do not provide transaction rights in minor bank account, so not able buy mutual funds through SIP in minor demat account. When will you allow to buy mutual funds in minor account through parent’s bank account.
Hi Nissar, currently, the payment can be completed using only the minor’s bank account linked with Zerodha. However, the exchange will soon enable the payment to be completed from the guardian’s bank account.
For minor account there is no debit card,UPI and net banking.Then if I buy MF for my minor account they ask valid virtual UPI id asked then how to buy the shares?
Nice app thank you Zrodha
How to open a minor Zerodha account?
Hi Sonu, we’ve explained the process in the video linked in the post above.
I want to invest in mutual fund by zerodha..
Thanks Zerodha,
I’ve already started investing in MF for my kids. 🙂
I would like to start monthly Sips in MFs in my 6 grandchildren names. What are the income tax effects? I don’t want to withdraw till they would get out of their minority status respectively.
Hi Afzal, a minor can earn only two kinds of income i.e. capital gains and dividend income. This income is clubbed with the income of the higher-earning parent, and they will have to bear the entire tax liability on the same. You can learn more here.
Sir g thanks for this I also want demate accounts for my minor child
Oh yes sar this is Amazing features
I worried that Account opening for children
How taxation works?
Hi Karthic, a minor can earn only two kinds of income i.e. capital gains and dividend income. This income is clubbed with the income of the higher-earning parent, and they will have to bear the entire tax liability on the same. You can learn more here.
How we get minor PAN Card??
How the tax implications will be on minor accounts ?
Is it the guardian tax brackets will be applied to minor ?
How capital gains tax will be applicable?
Hi Abhishek, a minor can earn only two kinds of income i.e. capital gains and dividend income. This income is clubbed with the income of the higher-earning parent, and they will have to bear the entire tax liability on the same. You can learn more here.
Very nice App
Thanks for this.This would be very helpful.One question what would be the tax implications if we sell any assets from minor account ?
Hi Palash, a minor can earn only two kinds of income i.e. capital gains and dividend income. This income is clubbed with the income of the higher-earning parent, and they will have to bear the entire tax liability on the same. You can learn more here.
Nice app
If I invest on my grandson age. 13 then who will be taxed LTCG MINOR’s Father or His grand parent
can A/C be opened jointly with my grand son
Hi Atul, a minor can earn only two kinds of income i.e. capital gains and dividend income. This income is clubbed with the income of the higher-earning parent, and they will have to bear the entire tax liability on the same. You can learn more here.
Can I invest with a minor a granddaughter or grandson?
You can, Abhaykumar. As a guardian, you can open a account in their name. We’ve explained the process here.
This is just imaginary … ?? What if zerodha get collapsed ? Or bankrupt .?? How should i go with ferther procedures ??
Hi Abhishek, it is absolutely safe to invest with us. The regulators have put in place strong measures to ensure the safety of both your holdings and funds if the stockbroker defaults. We’ve explained this in detail here.
I want to open a minor dmate account of my daughter and she is twelve years of age.
Hi Nikil, please check out the video linked in the post above to check out the minor account opening process.
I am interested in sip
Can I change my mutual fund name to my son name
Minor can get PAN Card and parent has to be representative assessee. They can apply online and submit the documents through post or courier.
Though it’s simple process, it takes some time.
Please start MTF facility in zerodha
I have mandate problem in Zerodha coin account so please give me information about how to create e-mandate in Zerodha coin account.
Please read Zerodha Varsity and attend some online sessions. It will surely help you.
Nice
Is Minor eligible for applying in ipo
Yes, a minor can apply for IPO, the process remains the same. We’ve explained it here.
Please help me for success in Zerodha trading.
Happy Independence day Jay hind jay bharat 🌹🫶🇮🇳
What if minor e.g. 5 yr old kid will not have Pan card, then how to proceed with account opening?
Hi Bhushan, PAN card can be obtained in the name of minor too.
Financial freedom for future thanks
Jai hind jai bharat
Do the parents have the right to withdraw or shift the mutual fund amount from one MF to other.
Yes, Lakshami. As a guardian, you are in full control of the minor account.
Good
Mera zerodga account nhi ban pa rha h digilocker se document 📄📃 verify nhi ho pa rahe h please help me
No comment
Very nice
Is there any app for purchase mutual fund or can I buy from kite?
Hi Utpal, you can invest in mutual funds on Coin.
Nice
Good
What if the child is not a citizen of India
What are the charges for opening Minor account? Is there an AMC?
Hi Lenold, account opening is free and there are no AMC charges applicable.
Happy NEWS on Happy Independence..
Super Kite Zerodha
can minor account be opened for an nir kid
I am interested to invest in Zerodha ETFs. Please nominate someone to guide me. Thanks.
Happy
When you guys will start corporate bonds
Hindi.
Hindi vidio send me
Since long STP facility in coin app is pending and due to very reason, I am reluctant to use coin for my mutual fund investing
Any update on this?
Great initiative. Thanks
For filter needed to sort the fund in the list
Good Idea
Great
Is it for NRIs too ?
Hi Nitin, currently, NRI minor account holders cannot invest in mutual funds on Coin.
What about the STP? I have been requesting it for a long time, and you have been promising it.
CERTAINLY HAPPY ABOUT YHIS PLAN.
Great initiative