The stock market is a popular place for investing money. Many young people nowadays choose to put their money in shares instead of keeping it in banks.
The main reason is that the returns in the stock market are often higher than those in savings accounts or fixed deposits (FD) in banks. However, sometimes people also encounter issues.
People lack information
If you want to invest to make sure your children have a good future, there are simple and popular choices in banks or post offices.
Whether it’s Sukanya Samriddhi Yojana or various FD-RD options, you can find ways to invest based on your goal.
Unlike the stock market, there aren’t specialized products available. However, you can easily invest in the stock market for your children. All you need is information.
Demat account is most important
The main thing for investing in the stock market is having a Demat account. So, if you open a Demat account for your child, all your problems are solved.
Now, we just need to check if we can open a Demat account for children and, if so, what is the process?
Can be opened in this way
A Demat account opened for children is called a minor Demat account. There is no minimum age limit for opening it.
This means that no matter how small your child is, you can invest in shares because you can open a Demat account.
It’s essential to note that a minor Demat account cannot be opened like a joint account; instead, it has to be opened with a parent or guardian.
Documents needed for a Minor Demat Account:
1. Parent or guardian’s PAN.
2. Parent or guardian’s address proof, which can be Aadhaar, passport, driving license, voter ID, etc.
3. Child’s birth certificate. Alternately, you can use Bal Aadhaar, school transfer certificate, or board mark sheet.
4. The parent must complete the SEBI KYC process with no stock market restrictions.
5. A bank account in the child’s name.
