How to do a FD for a new born?

[Primeritu2517]

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Primeritu2517
PARTICIPANT
April 4, 2025 at 5:53 am

I will have a niece/nephew soon. Instead of the usual clothing and all, I wish to setup some kind of trust fund for the “soon to be born” child. I am not sure what are best schemes available in the market. End goal is- when child id ready to attend college he/she can have a lumpsum to assist in the expenses. Ideas are welcomed.

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[Niharikarider869]

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Niharikarider869
PARTICIPANT
April 4, 2025 at 5:59 am

 Trust kind of setup has a lot of compliance cost, doesn’t make sense unless you want to invest tens of crores.

You have 18 years duration, best is to invest in an index or flexicap fund and move to low risk options few years before target. 

Minor accounts are a pain, best is to invest in your name and separate folio and gift it when needed.

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[Desishark6045]

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Desishark6045
PARTICIPANT
April 4, 2025 at 6:01 am

Trust fund is a wrong word. It involved registering a trust and yearly audits etc.

By your idea, you have to get a Pan card for the child, and then start a zerodha account in childs name with parents as guardians. You can buy stock or ETF or mutual fund in your name and gift it to the childs demat account.

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[Braveseeker242]

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Braveseeker242
PARTICIPANT
April 4, 2025 at 7:20 am

if it’s girl kid, open SSY

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[Primeritu2517]

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Primeritu2517
OP
April 4, 2025 at 8:10 am

will only know after the child is born. Any such schemes for baby boy?

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[Wiseguru1881]

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Wiseguru1881
PARTICIPANT
April 5, 2025 at 3:21 am

The govt didn’t plan any such scheme for the boys..

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[Cleverpanda1429]

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Cleverpanda1429
PARTICIPANT
April 4, 2025 at 6:30 pm

After the child is born you can make a fd in any bank in name of kid with parents as gurdians

Make it cumulative & now being good fd rates you can make it for 10-15 years

I had done for my niece for 10 years & renewed it for 10 more years

They are planing to use it for her wedding

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