Opening an Account for Minor

Who is a minor investor?

If your child is under 18, they are considered a minor investor. The account is in their name, but you manage it entirely until they turn 18.

What does it mean to invest for a child in their name?

When you invest for your child from your own account, the money is in your name, managed by you, and is technically part of your own wealth. Investing in your child's name is structurally different: a separate mutual fund account is opened in your child's name, separate from your own investment account.

You manage it entirely, you choose the funds, you may run the SIPs from your bank, you make every decision. But the account belongs to your child. When they turn 18, it becomes fully theirs. They'll complete a one-time onboarding process, including KYC verification to activate their account. Until then, everything is already in their name. 

Parents/Legal Guardians can open this account directly with Zerodha Fund House - 
Open your child's account →

Who controls the account while my child is under 18?

You do, as the parent/legal guardian. The account is in your child's name, but every decision sits with you: choosing funds, starting or stopping the SIP.

When you want to invest more or track existing funds (via WhatsApp), you'll see both your account and your child's. You can switch between them when making a new investment or checking on existing ones, one tap to move between the two.

Which bank account is used for investments?

By default when you are opening the child’s investment account with us, your bank account funds your child's investments. If you'd like to invest from your child's bank account or joint account with child instead, you can update through CAMS via https://digital.camsonline.com/cobm, or you can also reach out to support@zerodhafundhouse.com  and we'll help you out.

How do I withdraw money from my child’s investment account (child’s folio)?

Withdrawals from your child's investment account i.e. child’s folio can only be credited to a bank account in your child's name. As per applicable SEBI Regulations, all redemptions shall be mandatorily made to the Bank Account in the name of the Minor. .

This is the process:

1. Open a bank account in your child's name if you don't already have one.

2. Update this bank account on your child's investment account through CAMS via https://digital.camsonline.com/cobm

3. You'll need cancelled cheques from both the current account (yours) and the new one (your child's). CAMS verifies and updates the records.

4. A 7-day cooling-off period applies after every bank account change in mutual funds. After that, submit your withdrawal request and it credits to your child's bank account.

There is no lock-in. You can withdraw any time once the child’s bank account is updated. You can also reach out to support@zerodhafundhouse.com, and we’ll help you out.

What happens when my child turns 18?

When your child turns 18, the account, already in their name, becomes fully theirs to operate. It's the moment the account was built for.

Three things happen at that point: SIP’s you started for your child pauses automatically, you can invest more from your own bank account, and your child needs to complete a one-time onboarding process to activate full control. Until they do, the money stays invested, but no new transactions can happen.

Once the process is complete, the account is entirely theirs. They can start a new SIP, withdraw, switch funds, everything, independently.

You can reach out to support@zerodhafundhouse.com once your child turns 18 and we’ll help you out.

What documents do I need to open the account for my child?

If you already invest with Zerodha Fund House, you'll need:

• Your child's name, date of birth, and your relationship to them

• One document proving your child's age and your relationship: a birth certificate, passport, or school certificate

If you're new to Zerodha Fund House, you'll complete your one-time onboarding as part of the same flow. For your ease of tracking and investing, we are opening both your and your child’s account.

Once you submit, you can start investing right away. Documents submitted for child, go to our team for verification, which typically takes 1–2 working days. Once verified, your investments in the child's investment account (child’s folio) are processed. If anything needs a correction or a clearer copy, we'll reach out to you on email.

Open your child's account →

How is this taxed? 

While your child is under 18, any capital gains from this account are added to your income and taxed as per the applicable tax slabs for that fund type. 

In the year your child turns 18, capital gains from the month they turn 18 onwards are taxed in your child's income and taxed as per the applicable tax slabs for that fund type. 

Is this different from investing in my own name for my child?

When you invest in your own name with your child in mind, it sits in your portfolio alongside everything else. It's yours to manage, and passing it to your child later is a separate step you'd have to take.

In this account, the money is your child's from day one, held separately, clearly in their name. You manage it, but it's already set aside for them. When they turn 18, it becomes fully theirs, no action needed from your side.

Both are valid ways to invest for your child. This account is for parents/legal guardian who want that separation built in from the start, a portfolio that's formally your child's, not mixed in with your own.

Can I open an account for my child if the child doesn't have a PAN?

Yes. Your child's PAN is not required to open the account. Only your own PAN is mandatory.

Can only a parent open this account?

Either a parent (father or mother) or a court-appointed legal guardian can open and manage this account.

If you're a legal guardian rather than a natural parent, you'll need the court order that formally names you as guardian. 

Can minors open joint accounts with their parents or siblings?

No. A child's mutual fund account cannot have joint holders. Only one person - a natural parent or a court-appointed legal guardian can operate the account on the child's behalf.

Is there any limit on the amount that can be invested on behalf of the minor?

There is no upper limit on how much you can invest. The investment can be made from your bank account or the child's bank account.

What happens if I don't complete the required steps after my child turns 18?
Once your child turns 18, the account is frozen for new transactions until they complete their onboarding. If the records are not updated, any transaction requests including SIPs will be rejected.

You can also reach out to support@zerodhafundhouse.com and we'll help you through the process.