How to invest in Mutual fund in a minor child name?

How to invest in Mutual fund in a minor child name?

Minor children are allowed to invest in mutual Funds represented by parents or court appointed legal guardian. Minor shall be the Sole Holder of the folio and will be operated by the guardian. 

Documents required for making investment in minor child name

•  Birth certificate, Passport Copy or any officially valid documents for ascertaining date of birth and age of child.
•  Photograph of Child for identification.
• Proof evidencing the relationship of guardian and KYC Documents of guardian (PAN Card, Address proof and photograph).
• Payment Instrument from Minor account or guardian for effecting investment.

Steps to be followed for investing in Mutual Funds:

• Application for creating mutual folio along with self-attested copies of documents mentioned above shall be handed over to AMC.
• Guardian shall comply CKYC mandatory for investments in minor child.
• Only Offline applications are allowed for investment in minor child name.

Operation of mutual fund folio:

• Guardian can operate the mutual fund folio till the minor child turns 18. However, from the date of attaining majority, all transactions in the mutual fund account are freezed until the status of the folio is changed from minor to major.
• AMC can also register instructions like SIP, STP in a folio held by a minor. However, this instruction will be valid only till the date of the minor attaining majority. 

On attaining majority:

• Application form along with KYC documents for changing the status of the folio from minor to major is to be submitted to AMC.
• On CKYC Completion, Folio will be activated for further investments.
• SIP/STP instructions have to be registered again for the folio.

Mentotax recommends starting a SIP in your child name and watch the wealth grow as the child grows.

Keep reading and Support us!

#Mentotax

For more details: Mentotax@gmail.com

Are you saving enough for your child future?

Are you saving enough for your child future?

Children’s day is round the corner and it will be the precise time to think about the children’s future. Children’s play a huge role in everyone life. Parents play supportive role in every phase of the child. It’s up to us to create the secure future for child by identifying the goals and planning to achieve it by investing systematically.

Mentotax has identified major financial goals for securing child future that needs to be given importance.

Short Term Goals
Goal	Amount Required Now	Time Horizon	FV	Savings Required	Invest In
Baby Functions/ First Birthday	₹ 2,00,000	1	₹ 2,10,000	₹ -16,868	Liquid & Overnight Funds/RD/FD
School Start	₹ 3,00,000	3	₹ 3,47,288	₹ -8,567	Liquid & Overnight Funds/RD/FD
Long Term Goals
Goal	Amount Required Now	Time Horizon	FV	Savings Required	Invest In
Coaching Class for NEET/IIT	₹ 3,00,000	15	₹ 6,23,678	₹ -1,248	Dynamic Asset Allocator/BAF
Children Graduation	₹ 20,00,000	17	₹ 45,84,037	₹ -6,932	Equity & Equity Diversified Funds
Children Post Graduation	₹ 35,00,000	21	₹ 97,50,869	₹ -8,649	Equity & Equity Diversified Funds
Children Marriage	₹ 75,00,000	25	₹ 2,53,97,662	₹ -13,518	Equity & Equity Diversified Funds

There are various avenues to invest for child future, Recurring Deposit, Fixed Deposit, Sukanya Samriddhi Yojana, Post office savings, Mutual Funds, Endowment and ULIP, Public Provident Fund, Gold, Equity Linked Savings Scheme, Child Gift Funds.

Example Child Higher Education:

Assume after 17 years you want to send your child for higher education which costs Rs 20 lakh today. To save Rs 20 lakh after 17 years, assuming a return of 12 per cent, you need to save monthly SIP of Rs 2650. But on considering inflation of 5 per cent, will bring Rs 20 lakh to Rs 8.75 lakh after 17 years. Therefore, before starting to save for your long term goal, make sure you have estimated the inflated cost and then do SIP.

In the above example, Rs 20 lakh after 17 years at an assumed 5 per cent inflation and at expected return of 12% will actually cost you Rs 45.85 lakh. Now to achieve it, you actually need to do SIP of Rs 7000 instead of Rs 2650.

Mentotax recommends you to invest in equity considering the longer time horizon. Mentotax suggests you consider inflation, expected return based on the products before starting the investment. To achieve the financial goals and secure the child futures start investing early and enjoy the benefits of compounding.

Keep Reading and Support us!

#Mentotax

For more details: mentotax@gmail.com      

Liquid Funds are not so liquid anymore!

Liquid funds are debt funds that invest money in short-term market instruments such as treasury bills, government securities and call money. These funds invest in instruments up to maturity of 91 days. Liquid Funds are the best avenue to park idle funds, where investor can earn better returns with low risk.

Liquid funds were offering liquidity for the investments without any restriction on exit load. The Securities and Exchange Board of India (Sebi) has introduced graded exit load structure on liquid funds. From now all the investments withdrawn before seven days from date of allotment attracts exit load as per the schedule.

Days	Day 1	Day 2	Day 3	Day 4	Day 5	Day 6	FromDay7
Exit Load	0.0070%	0.0065%	0.0060%	0.0055%	0.0050%	0.0045%	NIL

Graded exit load was imposed to regulate the inflows and outflows of funds by Institutional investors. This move will reduce the risk for the retail investors.

Liquid Funds are best for parking the emergency corpus with minimal risk and better returns. Mentotax advises to invest in liquid funds only if you can hold more than 7 days. Enjoy more liquidity with Overnight funds.

#Mentotax

Keep reading and support us!

For more details

mentotax@gmail.com

New Fund Offer

Money Management for Newly Married Couple

Marriage is an life time and Important event of one's life. Marriage is Two individuals coming together to build life together. Both people may come from different background with different opinions, but they need to be in  liason with each other in all aspects especially Money.Marriage means sharing life goals, aspirations, commitments, assets and liabilities and finance.

Here are the few steps which will help the newly married couple to plan their money wisely:

Start Talking About Money:

It is always important to discuss about money with your new spouse as soon as possible after marriage. Everyone will have their own methods of spending, savings and investment. Now both must sync together for better money management.

Discuss Current Financial Situation:

Sit down together and discuss the current financial position. How much income both are earning? How much they can spend based on the spending habits?  Discuss about the personal debts they have together? How much they have saved and invested over the years? Be open and transparent with your spouse on money. Spend some time to discuss about desires, dreams and needs at the beginning stage itself.

Discuss about Financial Roles:

Clearly defining the financial roles among newly married couple will resolve lot of problems. "Who will be doing what" this should the point of discussion with the newly married couple. Think home is also similar to your career, you have to do the specific and Special tasks to achieve your goals and you have to tackle all the your obstacles. Know the strength and weeknesses of both and compare with eachother and assign tasks.

Note Down Your Life Goals:

For a newly married couple, Individuals goals will inturn become a common goal. Discuss with the spouse and jot down all goals. Like purchasing a house, Foreign Vacation, Retirement. Fund your goals together and review them periodically.

Converse about Bank Accounts:

Have separate account individually and Joint account together. Individual accounts can be used to get all credits like salary and Have a joint account to manage all your hold expenses and making Investments for your goals. Manage your money in effective way.

These things will make newly married couple to manage their money wisely.

#Mentotax

Keep reading and support us!

For more details
mentotax@gmail.com

e-Insurance Account

e-Insurance account is more or less like a demat account, where one can store all the insurance policies (Life, Health, General ) in a single account in electronic form. e-Insurance account helps the individuals to hold multiple policy of different companies in single account, pay premiums, track of all policies in one place. e-Insurance account has to be opened with Insurance Repositories.

IRDAI has permitted following four entities to act as 'Insurance Repositories' that are authorized to open e-Insurance Accounts. Insurance Repositories will provide 13 digit unique eInsurance account number to individuals.

• NSDL Database Management Limited
• Central Insurance Repository Limited
• Karvy Insurance Repository Limited
• CAMS Repository Services Limited

Opening an e-Insurance Account:

Step 1: Download eInsurance Account opening form of your preferred Insurance Repository.

Step 2: Fill the form and attach self-attested copy of KYC documents.

Step 3: Submit the forms along with self-attested documents to your preferred insurance repository.

Benefits of e-Insurance Accounts:

•         One time Know Your Customer updation for all policies.
•          Storage of all policy in electronic format - Paperless Policies.
•          Safe against theft or loss of physical policies.
•          Consolidated insurance statement on an annual basis.
•          Single request for contact details updation
•          Premium alerts & payment for all insurers through eIA
•          Ease in registering bank account details for premium payment and payouts
•          One Time Claim Intimation in case of any unfortunate event

Once e-Insurance account is opened with any of the Insurance Repositories, All the new policies and Existing policies can be stored in electronic form.

Mentotax recommends to open e-Insurance account with any of the Insurance repositories and convert all the existing policies to electronic form for easy tracking and other benefits.

Keep reading and support us!

For more details contact

mentotax@gmail.com

Financial Lessons from Mom!

Financial Lessons from Mom!!

Mother's are the back bone of the family!! She is the pillar of support and decision maker!! Mother's are always awesome in budgeting and in teaching kids about money.

Few Financial Lesson we can learn from our mother.

* Creating Budget:
Moms are best at creating budget, she knows where to spend the money and where to cut the expenses on forehand and prepares the budget accordingly. She teaches us the best way to budget.

*Live with what we have:
Mom are best and can adjust to live with what they have without sacrificing the needs of family. They don't take loans or use credit cards for monthly expenses. We should learn from moms to live with what we have.

* Save for future:
Moms always see ahead. She plays key role in family expenses and helps in savings. She keeps aside some money from her house expenses for emergencies. She saves in her kitchen jars and piggy banks. She inculcates savings habits in kids.

* Setting Financial Goals:
Moms are best in setting financial goals and acheiving it. She knows what is required for family. She starts saving and investing for goals. She keeps her kids to involve in acheiving the financial goals.

Keep reading and support us!

For more details contact
mentotax@gmail.com