My daughter has been working in Canada for the last 4 months. I have been investing for her marriage in mutual funds. Can I continue investing on her behalf in these funds? Or can she continue with these investments instead?
—Suvarna Lankalapalli
When you say that you were investing “on her behalf” for her marriage, I understand that you were investing in her name as a minor with you as the guardian. Regulations allow for money to be drawn for investment from a parent’s or guardian’s account for a minor’s investment folio, and investors generally use this for the financial goals of education or wedding.
At this point, however, there are two complications. First, your daughter is no longer a minor and hence, she needs to invest in her folio from her own bank account. The folio that you had been investing in would need to be transitioned into a regular (non-minor) folio that would allow her to do this (invest from her own bank account). This would be the right and regular course of action in such situations.
