As per a recent SEBI circular, mutual funds investments can henceforth be made in the name of a minor from either the parent/guardian’s bank account or a joint bank account of the minor with the parent/guardian.
Earlier, it was mandatory to open a bank account for the minor in order to process any mutual fund investments.
However, it is important to note that redemptions mandate that the proceeds can be credited only to the minor’s exclusive bank account, without any joint holders.