Zerodha investors can now invest in mutual funds using a minor account

Zerodha Mutual fund investors can now invest in mutual funds using a minor’s account, according to a publication by Zerodha Coin On the social media platform, the investor can buy stocks, mutual funds, exchange-traded funds (ETFs), government bonds and sovereign gold bonds on behalf of their children through Zerodha. minor account and you can give them away. However, intraday trading and future options trading are not permitted for minor accounts.

Previously, if investors had an account in their child’s name, it was not easy for them to directly invest in mutual funds using a Coin account. Until now, investors had to buys mutual funds in his own account and then make an off-market transfer to the minor’s demat account.

“Until now, one had to first purchase mutual fund units in their account and then make an off-exchange transfer to the junior account, resulting in a poor experience,” Zerodha said.

You can now invest directly in mutual funds using a minor account on Coin.

Until now, one had to first purchase mutual fund units in his/her account and then make an off-market transfer to the junior account, resulting in a troublesome experience.

Here’s everything you need to know👇 image.twitter.com/zImHZDY5PL

– Zerodha Coin (@CoinByZerodha) August 14, 2024

The investor must open a Zerodha account in the name of his/her children through a process shared by Zerodha. The investor must log in to the Zerodha account using the minor’s account details.

The investor can even set up a SIP to invest regularly and automate the SIP by mandates. Mandates will be activated within three business days.

We have always wanted to help parents save in a simple and easy way for their children’s future. Now you can open a Zerodha account for your children online and invest in stocks, mutual funds and bonds with them. image.twitter.com/zcOJCj1NAz

— Zerodha (@zerodhaonline) January 25, 2024

After selecting the fund for the SIP, an investor can increase the existing SIP every year by a predefined percentage. Zerodha also shared some important points that clearly specified which bank account can be used for making payments, where the MF repayment amount will be credited. From making the payment to getting the repayment amount, the investor should use only the minor’s bank account linked with Zerodha as withdrawal requests from guardians or other accounts will be rejected.

When the minor turns 18, the minor account must be converted to an individual account. When making investments through a minor account, the guardian is required to pay taxes.