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Ch.9 · KYC and Folio Management · medium

What happens to a minor's mutual fund folio when the minor turns 18 and no conversion documents are submitted?

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EXPLANATION

Once the minor attains majority (18 years), the folio is frozen for all transactions — purchases, redemptions, and new SIPs are blocked until the now-adult investor completes fresh KYC and converts the folio.

A.The folio continues as a regular folio automatically

B.All units are automatically redeemed and proceeds credited to the guardian

C.The folio is frozen for fresh purchases and new SIP registrations [✓ Correct]

D.The folio is transferred to the guardian's name

EXPLANATION

Once the minor attains majority (18 years), the folio is frozen for all transactions — purchases, redemptions, and new SIPs are blocked until the now-adult investor completes fresh KYC and converts the folio.

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