How to Change a Minor's Mutual Fund Account After Turning 18
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When a minor turns 18, their mutual fund folio is restricted for transactions, and the guardian can no longer operate it. Existing SIP, SWP and STP instructions also stop.
To resume transactions, the now-adult investor must change the folio status from Minor to Major.
Documents Required for Mutual Fund Conversion
Keep these ready for the MAM request
- PAN card: Copy of the now-adult investor's PAN.
- KYC: KYC acknowledgement or completed individual KYC form.
- Bank proof: Cancelled cheque with the investor's printed name, or the latest eligible bank statement/passbook.
- Conversion form: Completed Minor Attaining Majority (MAM) form for physical submission.
- Signature and nomination: Required signature attestation and nomination form.
- Fresh mandate: SIP, STP or SWP form if the investor wants to restart these instructions.
Step-by-Step Conversion Process
1 Check or Update the PAN Card
- If the investor already has a PAN issued as a minor, update the photograph, signature and other details where required.
- If they do not have a PAN, apply for one through the official PAN Services Portal.
Important: An existing PAN number does not change on turning 18. Do not apply for a second PAN.
2 Update the Bank Account
- If the bank account is still in minor status, convert it to an adult account or open a new eligible account in the investor's name.
- If the investor already has an eligible adult bank account, they can use that instead.
- Keep the bank proof ready for the mutual fund folio. Some banks allow online upgrades; others require a branch visit.
3 Complete Individual KYC
- The investor must complete KYC in their own capacity.
- This may involve updated details, identity verification or eKYC, depending on the existing KYC status.
- Check that the name, PAN and date of birth match the relevant records.
4 Submit the Minor to Major (MAM) Request
Use the online option if the folio is eligible. Otherwise, submit the physical MAM form.
5 Re-register SIP, SWP and STP Instructions
- Existing SIPs, SWPs and STPs stop when the investor turns 18.
- Once the folio is updated, register fresh instructions if the investor wants to continue them.
- Complete any required payment mandate for the now-adult investor.
FAQs
1. How to convert a minor account to a major account online?
Mutual fund account: Eligible investors can use the CAMS online conversion service.
Bank account: The process depends on the bank. For example, ICICI Bank offers online conversion for eligible accounts. Others may require a branch visit and a Minor-to-Major Re-KYC form, such as the form listed by Axis Bank.
Converting the bank account does not automatically convert the mutual fund folio.
2. Does a minor need a new PAN card after turning 18?
No. If a PAN already exists, update its details where needed. The PAN number stays the same.
3. Can the investor redeem mutual funds immediately after turning 18?
Not until the Minor to Major status change has been processed. Once the folio is operational, eligible redemptions can be placed under the scheme's rules.
4. Will existing SIPs restart automatically after conversion?
No. Fresh instructions must be registered if the investor wants to continue SIPs, STPs or SWPs.
