How to Open a Minor’s Mutual Fund Account in India

Who counts as a minor

Anyone under 18. The folio is in the child’s name and operated by one registered guardian (father, mother, or court-appointed). No joint holders.

What you need to open a minor folio

A) Documents (practical list)

• Proof of date of birth and guardian relationship.

  • If guardian is a parent, one document for the minor usually covers both. Use birth certificate, passport, or Aadhaar.

  • If guardian is court appointed, attach court order plus a separate DOB proof.

• Bank proof only if digital verification fails. Upload a cancelled cheque or statement for the linked account in that case.

B) Details to capture (form fields)

• Minor: full name, date of birth, PAN if available.

• Guardian: name, relationship, PAN, mobile, email, address.

• Bank to link: minor’s or guardian’s account.

• Compliance: occupation, income slab, political exposure for the holder whose PAN is used.

Notes for MFDs: minor PAN is optional to start. Guardian PAN and KYC are sufficient. Guardian bank is acceptable for funding and SIPs. Keep clear scans. Combine pages into a single PDF if that is easier.

Common misconceptions you can correct

• “Minor PAN is mandatory.” Not required to open. Use guardian PAN and KYC; add minor PAN later if available.

• “Only the minor’s bank can be linked.” Guardian bank is acceptable. If e-verification fails, upload a cancelled cheque.

• “Both parents can be guardians or joint holders.” One guardian only. No joint holding on minor folios.

• “SIPs continue automatically after 18.” On the 18th birthday, the folio pauses until the now-adult updates PAN, KYC, bank, and signature. Re-register SIPs after conversion.

• "Account opening cannot be digitally." Platforms like Creso support complete digital onboarding, where guardians can just fill the onboarding form and give authorisation for account opening via a link received on SMS/ Email

Why starting early is important

A small, steady SIP plus time beats large, late contributions.

• ₹5,000 per month for 18 years at 12 percent grows to about ₹38 lakh.

• Total invested is ₹10.8 lakh. Growth is roughly ₹27 lakh.

• Start 8 years late and the corpus is a fraction of that.
  Message for parents: start small, start now, let time do the heavy lifting.

Where to open a minor account

A) Distributor-led routes

• AMC websites, NJ, Prudent, AssetPlus, ZFunds

  • Pros: established flows, broad scheme access.

  • Cons: often ask for more documents than needed, activation can take a few days, sub-par user experience.

• Directly on industry rails: NSE Invest, BSE STAR MF, MF Utility

  • Pros: native support for minor folios, robust back office.

  • Cons: heavy data entry, limited client-facing experience, no app for guardians to view holdings.

B) How Creso solves both pain points

• Fast activation: typical turnaround 3 to 6 hours once form is filled

• Guardian app: clean, easy-to-use app where guardians can view the child’s holdings and SIPs in one place.

• Less paperwork: accepts guardian PAN, guardian bank, and a short, guided checklist that cuts out unnecessary docs.

How Creso makes minor onboarding simple

• One flow: distributor or parent fills a short form and uploads scans here

• Smart rules: handles guardian PAN as primary when the child has no PAN; captures occupation, income, and PEP for the correct holder.

• Bank friendly: links either minor or guardian bank and sets up e-mandates for SIPs.

• Proactive alerts: flags upcoming majority so conversion to major status is smooth.