How to Convert a Minor's Mutual Fund Folio to Major Status: Step-by-Step Guide

A minor mutual fund folio must be converted to major status once the investor turns 18. All existing SIP/STP/SWP plans also stop upon attaining majority, and fresh mandates are needed. 

Changing a minor mutual fund account to major status requires an updated PAN, bank details, individual KYC, and a completed MAM form. Once these documents are verified and processed by the AMC, the minor-turned-major can resume transactions.

You can invest in mutual funds in your child’s name while they are still a minor. However, once they turn 18, the mutual fund holdings folio must be updated to major status. Until this process is completed, further transactions in the folio are restricted.

So, how do you change a minor mutual fund account to major status? What documents do you need? What should you remember? This covers the entire mutual fund folio minor-to-major transition process in detail. 

To change a mutual fund folio from minor to major status, parents/guaradians of the minor have to submit the Minor to Major Request Form (also known as MAM), along with updated KYC and banking documents. 

Here’s a simple step-by-step guide on how to convert from minor to major status in mutual funds:

Step 1: Update PAN 

When a minor turns 18, they need a PAN card with an updated signature and photograph to continue transacting in mutual funds. Here's what to do:

• If they don't have a PAN card: Apply for one through the Protean PAN portal.
• If they already have a minor PAN card: Visit the Protean portal, select the PAN correction option, and request an update to the photograph and signature. Submit the required documents to complete the process.

Step 2: Update the Minor’s Bank Account

After the PAN is updated, the minor’s bank account needs to be updated to major status. For this, both the individual (formerly minor) and guardian have to visit the bank in person within 180 days of attaining major status.

You will need the following documents to complete this process:

• Updated major PAN
• Aadhaar Card
• DOB proof
• Recent passport-sized photographs 
• New signature specimen

Once the account is changed to a major status, the bank will issue you a new debit card and chequebook. In case the minor doesn’t yet have a bank account, they need to open a new one in their name.

Step 3: Complete Your KYC

The next step in changing a minor mutual fund account to major status is completing the investor's KYC in their own name. You cannot use the guardian's existing KYC for this.

Here's what you need to do:

• Visit a KRA website (CAMS, KFintech, or CDSL).
• Fill out the individual KYC form.
• Submit the updated PAN, identity proof, address proof, and other required details.
• Complete the verification process.
• Obtain the KYC acknowledgement for the next step.

Step 4: Fill the Minor-to-Major Form

Next, download the official MAM form from the AMC or RTA website. This form is required to change the minor mutual fund folio to major status.

Enter the investor's name, PAN, date of birth, folio numbers, contact information, and updated bank details. The investor must also sign the form.

You will need to submit the following documents:

• Completed and signed MAM form.
• Copy of the minor-turned-major’s updated PAN card.
• KYC acknowledgement/filled KYC form/C-KYC ID No.
• Cancelled cheque/passbook/bank statement with the young adult’s name clearly printed on it.
• Attestation signature by the registered guardian or a bank official.

Step 5: Submit the Form

You can visit the AMC’s branch office or an RTA branch office to submit the duly filled form and physical copies of the documents. The AMC/RTA will verify the documents, update the investor's details, and change the mutual fund folio from minor to major status.

Please remember that until the conversion is completed, you cannot carry out transactions in the folio.

Here are a few important points to remember when transitioning from a minor to major mutual fund folio:

• Fresh SIP Mandates: All existing SIP, STP, and SWP instructions will stop when the minor turns 18. You will have to submit fresh mandates to restart them.
• Nomination: There is a nomination section on the form where the minor-turned-major has to opt in or out of nomination.
• Separate MAM Forms for Each Folio: If you have investments across multiple AMCs, submit a separate MAM form and supporting documents to each one. Multiple folios under the same AMC can be listed in a single form.
• Signature Attestation: There are multiple attestation options. You can get the form signed by the registered guardian (as per the existing MF documentation), a First Class Magistrate, or a Notary. Bank attestation is another option.

Once your child turns 18, the guardian can no longer operate the minor mutual fund account as before. The folio must be updated to major status so the young adult can take control of their investments.

Completing the MAM process also ensures that their PAN, KYC, bank details, and signature are updated in the AMC's records. After the conversion, they can start making their own investment decisions, redeem units, or register fresh SIPs.

1. What is the process to change a minor mutual fund account to major status in India?

To change a minor mutual fund account to major status, you have to:

• Update the minor’s PAN (now major) 
• Change their bank account to major 
• Do a fresh KYC as a major
• Submit the Minor Attaining Majority (MAM) form with supporting documents to the concerned AMC or RTA

Once verified, the folio will be updated to major status.

2. What documents are required for minor to major mutual fund folio conversion?

For minor to major mutual fund folio conversion, you need:

• A completed MAM form
• Updated PAN
• KYC acknowledgement or KYC form
• Bank account proof
• Signature attestation 
• Nomination form

The AMC may also request additional documents to complete the process.

3. How does a change from minor to major in mutual funds affect existing SIP instructions?

Existing SIP, STP, and SWP instructions stop when the investor turns 18. You need to apply for a minor-to-major mutual fund status change and submit fresh mandates for these systematic plans. 

4. What happens during the mutual fund folio minor-to-major transition after the investor turns 18?

When the investor turns 18, the guardian loses the authority to operate the folio, and further transactions in the folio are restricted. The investments remain in the folio, but the now-major investor has to complete the minor-to-major conversion before they can manage or redeem them.

5. Can transactions continue in a minor to major status mutual fund folio before the process is complete?

No. All transactions, including purchases and redemptions, are stopped until the AMC receives the duly signed documents and KYC proofs needed for the minor-to-major mutual fund folio update. This means all existing SIPs stop as well. 

An Investor Education and Awareness Initiative by Tata Mutual Fund. 

To know more about KYC documentation requirements and procedure for change of address, phone number, bank details, etc., please visit: https://www.tatamutualfund.com/deshkarenivesh

Please deal only with registered Mutual Funds, details of which can be verified on the SEBI website under ‘Intermediaries / Market infrastructure institutions.’

All complaints regarding Tata Mutual Fund may be directed to service@tataamc.com and/or https://scores.sebi.gov.in/ (SEBI SCORES portal) and/or https://smartodr.in/login

Nomination is advisable for all folios opened by an individual, especially with sole holding, as it facilitates an easy transmission process. 

This communication is a part of the investor education and awareness initiative of Tata Mutual Fund.