Radhika Gupta, Edelweiss Mutual Funds MD and CEO, took to social media platform X to share tips on how to start an SIP (systematic investment plan) in children’s names. A day ago, Gupta had shared the benefits of starting an SIP in children’s names and how it can help investors achieve their financial goals.
Commenting on queries from investors, Gupta shared the FAQs for easy investment. Here are the top points:
1. Can I create a minor folio if the minor doesn’t have a PAN?
o Yes, a minor’s PAN is optional for creating a folio. Only the guardian’s PAN is mandatory.
2. What documents are needed for minor folio creation?
o You will need the guardian’s PAN, along with relationship proof documents such as the minor’s Birth Certificate, Passport, or Court-appointed document.
o The minor’s PAN is not mandatory.
3.Can I subscribe to SIP from both the guardian’s and minor’s bank accounts?
o Yes, both guardian’s and minor’s bank accounts can be used for SIP subscriptions and lumpsum transactions.
o Redemptions will only be credited to the minor’s bank account.
4. How long does it take to create a minor folio?
o Minor folio creation may take up to 2 business days, subject to verification of the minor/guardian relationship document.
o The first transaction can be initiated at the time of folio creation or later, once the folio is created.
5. What if I have any queries? For any queries, you can reach out to:
o Email: EMFHelp@edelweissmf.com
o Toll-Free: 1800-425-0090
o Non-Toll-Free: +91-40-23001181
On Wednesday, Gupta highlighted the advantages of initiating an Systematic Investment Plan (SIP) for a child. She emphasized that it not only instills positive financial habits for the future but also encourages a more goal-driven and forward-thinking approach when the investment portfolio is in the child’s name.
“One of the things I’ve been talking about a lot is the benefit of starting an SIP in your child’s name, ideally as soon as possible and for a specific goal. Not only does this help teach good money habits later, but when the folio belongs to the child, you tend to be more goal-oriented and long-term.”
Gupta has previously discussed the importance of investing for children. She recommended that parents start by saving and ensuring they have their child’s essential documents, such as a birth certificate, Aadhaar card, PAN card, and a bank account. Gupta emphasized the need to establish a savings goal, which should be broken down into the number of years available to determine the investment amount required.
Over the past five years, children’s funds have provided an average return of approximately 12.62%. The HDFC Children’s Fund yielded the highest return at 16.40% during this period, with the Tata Young Citizen Fund following closely behind at 15.84%.