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Seamlessly Gift Mutual Funds or Stocks to Children: Avoid Future Issues
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Gifting Mutual Funds or Stocks to Children: Avoid Future Complications
M
Moneycontrol
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18-03-2026, 16:01
Gifting Mutual Funds or Stocks to Children: Avoid Future Complications
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Decide if the child is a minor or adult, as this impacts ownership rules and account setup.
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Gifting existing units/shares requires documentation like a gift deed; fresh investment in the child's account is often simpler.
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Income from investments gifted to minors may be clubbed with the parent's income for tax purposes.
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Consider diversified mutual funds for long-term growth, or stocks for teaching investment principles.
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Document the gift properly with a gift deed to prevent future disputes and provide financial guidance to your child.
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