Parents will now be able to invest in mutual funds in the name of children, the new rule will be applicable from this date

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SEBI has introduced a new rule regarding mutual fund schemes. Under this rule, now parents will be able to invest in mutual funds in the name of their children. Now parents can easily invest in mutual funds in the name of their children from their own accounts. There is no need to open joint account or account of minor children. SEBI has issued a circular in this regard.

Money will be deposited in the verified bank account of the minor only

As per the SEBI circular, investments can be made in mutual fund schemes in the name of minors, from minors, parents and joint bank accounts. Also, the market regulator has said that on withdrawal of money invested in a mutual fund scheme in the name of a minor, the money will be deposited in the verified bank account of the minor only.

The new rule will come into effect from June 15

This new rule will come into effect from 15 June 2023. SEBI has advised all AMCs to make necessary changes to facilitate investment and withdrawal of mutual funds as per the new norms.