Table of Contents
Why Open a Zerodha Minor’s Account 2024?
How Does a Zerodha Minor’s Trading Account Work?
How to Open up Zerodha Minor’s Trading Account Online?
How to Open up Zerodha Minor’s Account Offline?
Are you thinking about opening up a trading account in Zerodha for your child? You can easily do that, given that the broker firm is now allowing parents to open up kids trading accounts with it. Zerodha started this new service on January 25, 2024, allowing parents to open up trading accounts for their children. Read and find out how you can open up a Zerodha minor’s trading account for your child offline and online, the AMC or account maintenance charges that you have to pay and other important details.
Open an account with Zerodha.
Why Open a Zerodha Minor’s Account 2024?
The purpose behind this is to help parents make savings and carry out investments in a simple and easy way, to safeguard the future of kids. Guardians can open up a Zerodha minor’s trading account online and make investments in bonds, mutual funds and stocks with their kids.
In order to encourage more number of parents to make investments along with their children, the broker has made opening up Zerodha minor’s trading account free of cost. The annual maintenance charges or AMC have also been waived off.
As a guardian, you have full authority over the Zerodha minor’s trading account that you open up for your kid. A minor, one who is less than 18 years of age, cannot buy shares on his own. However, he or she can only track portfolio holdings and sell the same.
Also read – How to Open a Minor Demat Account in India: Complete Guide for Investors.
How Does a Zerodha Minor’s Trading Account Work?
As already said, until your child turns 18 years old, you (the guardian) will have full authority over his or her Zerodha minor’s trading account. As a minor, your child cannot buy own shares and can only track and sell holdings in portfolio. However, your child can apply for takeovers buybacks and IPOs.
You can either gift shares to your child or your kid can request you to buy and gift shares to him or her. On behalf of your child, you can buy sovereign gold bonds, Government bonds, exchange-traded funds (ETFs), mutual funds and stocks and then gift the same to him / her.
F&O trading or intraday trading is not possible with Zerodha minor’s trading account. On the console or online back-office platform of Zerodha, you can find a Family Accounts feature. It lets you track your own portfolio as well as the portfolios of your minors – at the same time.
When your child becomes an adult after 18 years, there is need for a new KYC. The Zerodha minor’s trading account has to be transformed into an individual account.
Your child can earn with a Zerodha minor’s trading account in two ways:
- Capital gains and
- Dividend income
This income is combined with the income of the parent who earns more. He or she will be responsible for the entire tax payment.
How to Open up Zerodha Minor’s Trading Account Online?
If you want to register an online Zerodha minor’s trading account for your child, both your kid and you (the parent) have to connect your Aadhaar numbers to a mobile number.
Also, as a parent, you need to have a Zerodha account existing already.
If the Aadhaar number of your minor is not connected to a mobile number or in case there is no Aadhaar number of your minor, you should create the Zerodha minor’s trading account offline.
You should follow these steps mentioned by Zerodha to open up a trading account for your minor online.
To begin, visit www.signup.zerodha.com/minor and access using the guardian’s Zerodha account credentials.
Review and confirm guardian profile details before proceeding. If adjustments are needed, refer to guidelines on modifying guardian profile details for minor account setup.
Following updates, the Zerodha minor’s trading account can be initiated online.
- Provide and authenticate mobile number and email ID via OTP.
- Input minor’s PAN and date of birth. Then proceed.
- Access DigiLocker page to input minor’s Aadhaar number, followed by OTP submission.
- Enter minor’s bank account details, agree to terms and conditions, and then proceed.
- Conduct In-person Verification, requiring both minor and guardian presence.
- Submit necessary documents¹ and continue. Optionally, add nominees.
- Make an eSign using guardian’s Aadhaar.
- Upon completion, expect account activation within 48 working hours, with login credentials dispatched to registered email ID.
Once there is verification of all the important documents, you can open up a Zerodha minor’s trading account in just 48 hours after documents submission from your end.
Also check out – Zerodha Charges – Account Opening Charges, Account Maintenance Charges etc.
How to Open up Zerodha Minor’s Account Offline?
If your child does not have an Aadhaar number or you have not linked the Aadhaar number of your child to a mobile number, you can only open up a Zerodha minor’s trading account for him or her offline.
As a parent, on behalf of your child, you need to sign up all the forms as well as supporting documents. You have to submit documents such as scanned copies of Aadhar card, PAN card, school leaving certificate or birth certificate, a recent photograph, passport as date of birth proof or marksheet issued by a higher secondary education board, a legal guardian letter, bank statement or copy of cheque cancelled.
Open an account with Angel One or Zerodha.
Conclusion
Basically, this is how you need to open up a Zerodha minor’s trading account for your child. Following the steps mentioned here, it can be very easy for you to open up a minor’s account in Zerodha and ensure safe financial investments and savings for your child from now on. Zerodha is one of the best brokers in India and you can expect the most secure and quick trading activities for yourself and your child, using accounts registered with this broker. You can start trading with Zerodha and also include your child into the trading activities, to build a secure financial future for him or her.
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