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Mutual funds for minor accounts - FAQs

Q. Can minors invest in mutual funds through Coin?
Yes, minors can invest in mutual funds through Coin. To learn how to log in to Coin, see What is the Coin login ID and how to log in to the Coin app?

Q. Which bank can be used to complete the payment on Coin?
Currently, the payment can be completed using only the minor's bank account linked with Zerodha. However, the exchange will soon enable the payment to be completed from the guardian's bank account.

Q. Which payment modes are supported for completing the payments in Coin?
The payment can be completed using UPI, netbanking, NEFT, or RTGS. The SIPs can also be linked to the mandate to be auto-debited from minor's bank account.

Q. Where are the funds from mutual funds redemption credited in a minor account?
Funds from mutual funds redemption are credited to the minor's bank account linked to the Zerodha account. Requests for withdrawal from a guardian's or any other individual's bank account will be rejected.

Q. Can the payment be completed using the guardian's bank account?
Currently, the payment can only be completed using the minor's primary bank account linked with Zerodha. However, Exchange will soon allow the payment to be completed from the guardian's bank account.

Q. Can minors initiate SIPs (Systematic Investment Plans) through Coin?
Yes, SIPs can be initiated on Coin for minor accounts. To learn how to create an SIP on the Coin app, see How to create a SIP on the Coin app?

Q. Can all the mutual funds be purchased through a minor account on Coin?
Yes, all mutual fund schemes can be purchased through a minor account.

Q. Can mutual funds be transferred to the minor's account?
Yes, mutual funds can be transferred to the minor's account using Zerodha's gifting feature or CDSL easiest.

Q. Where can the mutual funds transferred to the minor's Zerodha account be tracked?
Mutual funds transferred to the minor's Zerodha account can be tracked on Coin and Console.

Q. Are there any restrictions on Coin for minor accounts?
No, there are no restrictions.

Q. What should be done when the minor turns 18?
A minor's account must be converted to an individual account once a minor turns major (18 years). To learn more, see How can a minor account be converted to an individual account?

Q. Who is liable to pay the taxes (if applicable) for a minor account?
The guardian of a minor account is liable to pay the taxes that are applicable to a minor account.

Q. Are there any additional fees or charges associated with maintaining a minor account on Coin?
No additional fees or charges are associated with maintaining a minor account on Coin.