Five smart things to know about minor folios

1) Investment can be made in a mutual fund in the name of a minor child, to save for the goals for the child.

2) Minor folios have to be singly held in the name of the minor. No joint holdings are allowed.

3) Minor folios can be opened only by parents who are natural guardians or court-appointed guardians.

4) KYC formalities have to be completed by the guardians and the folio is operated by them. No PAN or KYC for the minor is needed.

5) Date of birth of minor has to be compulsorily provided. On attaining the age of 18, the minor turned major alone can operate the folio after completing KYC process.

The content is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.