SIP got rejected

POSTED BY Amit ON May 29, 2012 9:19 am COMMENTS (3)

I opened HDFC Online Investment account on my minor son’s name & I am second account holder. Then, I setup SIP for HDFC Top 200 Fund. My SIP got rejected saying that “you can’t purchase mutual fund with minor as first account holder”

Is there any condition or rule like this?

3 replies on this article “SIP got rejected”

  1. BanyanFA says:

    Amit,
    If you want to open it in your son’s name, then keep him as a first holder and you become the guardian. All the details such as PAN would be yours. The SIP will not get rejected in this manner.

  2. Amit says:

    Thanks Ashal.
    I already have another portfolio under my name and I want separate folio for my Son, thats why I open this account.

  3. Dear Amit, in case of a joint account in banks or MFs, the first name is treated as the primary owner. For the given case as the first name is of a minor, that’s why the application was rejected.

    By the way, why are you not investing under your own name?

    Thanks

    Ashal

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