Can I start a systematic investment plan (SIP) in the name of my unborn child? If not, can I do it as soon as she/he is born? Can investments be started in the name of minors? What is the best way to build a fund for my child’s future?
—Roshan Prakash
Mutual fund investments can only be made in the name of minors with a bank account, which in turn would require an identity proof of some sort (say, a birth certificate). As such, it would not be possible to invest in the name of an unborn child. However, you can start investing as soon as the child is born in her name. The best way to build an investment portfolio of this type would be to use one of the children’s funds offered by mutual fund companies, such as HDFC and Axis. There are several variants of such schemes, but given the long-term nature of these investments, it would be best to go for the most aggressive (read: the fund with the most equity exposure) of these funds.
