Archive · 12 Aug 2025
How to Invest in Direct Mutual Funds for Your Child
Parents can invest in mutual funds for their kids to help save money for things like college.
They can do this through a special online portal called MFU.
To start, they need to set up an account and provide information about the child and the guardian.
The guardian manages the account until the child turns 18, at which point the child takes over the account and can start managing their own investments.
The account is linked to either the child's or the guardian's bank account.
When the child turns 18, they will gain complete control of their investments.
Parents can invest in direct mutual funds for their children using the Mutual Fund Utilities (MFU) portal.
The guardian of a minor must be a biological or court-appointed guardian.
To start, parents need to obtain a Common Account Number (CAN) through MFU.
Required documents include proof of the minor's date of birth and bank details.
When the child turns 18, the guardian updates the account to reflect the change and the child gains control.
- Who
- Parents or legal guardians investing for their minor children.
- What
- Investing in direct mutual funds for children using the MFU portal.
- When
- The process begins when a parent or guardian decides to invest in their child's name.
- Where
- Online, through the Mutual Fund Utilities (MFU) portal.
- Why
- To build long-term wealth for the child and instill financial discipline.
General Mutual Funds
Children’s Mutual Funds
Investment Style
General Mutual Funds
Suitable for experienced investors seeking control.
Children’s Mutual Funds
Suitable for parents seeking disciplined, goal-oriented investing with tax benefits.
- Platform for Investment
- Mutual Fund Utilities (MFU) portal
- Guardian Eligibility
- Biological parent or court-appointed guardian
- CAN Registration
- Online through MFU
- Required Documents
- Proof of minor's birth and relationship with guardian, bank proof
- Account Control After 18
- Child gains sole control
- Taxation
- Income is clubbed with guardian's until 18; taxed independently thereafter