Let’s talk about family money—because we all know how messy it gets. You’ve got your account, your spouse has theirs, maybe there’s a joint savings account you opened years ago and forgot about. But when it comes to investments, the question hits harder: who actually gets to manage the money? Not just who knows the password, but who legally can buy, sell, and make decisions? This is where the choice between adding an authorised person and opening a joint account as joint holders becomes the most important money decision your family will make.
The Real Difference: Helper vs. Partner
Think of it like this: an authorised person is your trusted deputy. You’re still the boss, the sole owner of every single stock and bond in that demat account. They can help you place buy/sell orders, check how your portfolio is doing, or download statements when you’re busy or traveling. But they can’t withdraw money, can’t take the securities out, and definitely can’t claim ownership. It’s like giving someone the keys to drive your car but the registration stays in your name. This works perfectly when you want your adult child to help manage your investments as you get older, or when you’re teaching your nephew about markets but aren’t ready to hand over the reins.
A joint holder, on the other hand, is a co-owner. When you open a joint demat account—usually as “Joint 1” and “Joint 2″—you’re both legal owners of everything inside. The most common type is “Either or Survivor,” which means either of you can operate the account independently. And here’s the big one: if something happens to one person, the assets automatically pass to the survivor. No lawyers, no court documents, no family drama. It’s built for spouses building wealth together or parents planning a smooth handover to their grown-up kids.
When to Choose What: Real Family Scenarios
Pick the authorised person route when:
- You need help, not partnership. Maybe you’re traveling for work and want your sister to handle some trades, but you want full control when you’re back.
- You’re mentoring someone. Let your college-going son learn by executing trades under your watchful eye without giving him actual ownership rights.
Choose the joint holder structure when:
- You’re truly pooling money with your spouse. Both salaries go in, both names are on it, and you’re building a shared future.
- Succession is on your mind. If you want your wife or kids to have seamless access to investments without legal headaches later, this is your answer.
How This Plays Out with Real Investments
Let’s say your family decides to invest in market linked debentures (MLDs)—these are bonds that give you returns based on how the stock market performs, but with better tax treatment than regular bonds. Smart move for fixed-income lovers.
If you hold that MLD in a joint account, both of you own it. The interest gets credited to your joint account, and both of you decide together whether to hold it till maturity or sell early. It’s a shared win.
If the MLD is in an account where your child is just an authorised person, you own it completely. They can execute the buy order for you, but all the benefits—interest, tax advantages, maturity proceeds—are yours alone. They’re helping, not sharing.
Making This Decision Without the Headache
This isn’t something to decide over dinner and forget about. The wrong choice can create legal messes or family friction. You need to think about control, succession, and who you really trust with your financial legacy.
This is where having an expert in your corner saves you from costly mistakes. Firms like Anand Rathi Shares and Stock Brokers don’t just give you a platform to trade—they actually sit down with your family and understand your dynamics. Are you a senior citizen who needs help managing your portfolio? They’ll explain how appointing an authorised person works and what safeguards to put in place. Are you a couple planning your retirement together? They’ll walk you through the joint holder setup and how it simplifies estate planning.
Their advisors break down the legal stuff into simple terms. They’ll help you fill out the forms correctly, whether you’re adding your daughter as an authorised person or making your spouse a joint holder. And when you’re ready to build your portfolio—whether with equities, mutual funds, or instruments like market linked debentures—they’ll guide you based on your family’s goals, not some generic template.
The Bigger Picture: It’s About Your Family’s Money Philosophy
At the end of the day, this decision reveals how your family views money. Are you a single captain who wants a reliable first mate? Or are you building a true partnership where everyone has skin in the game? There’s no universally right answer—only what’s right for your family’s trust level, goals, and dynamics.
What matters is making the choice consciously, not by default. Because whether you pick an authorised person or a joint holder, you’re laying the foundation for how your family will handle wealth for decades. And with the right guidance from experienced partners like Anand Rathi, you can make that foundation rock-solid.
When it comes to building the actual portfolio, their research team provides insights that make sense for your specific structure. If you’re a joint holder couple nearing retirement, they might suggest principal-protected market linked debentures for steady income. If you’re a senior citizen with an authorised person helping you, they’ll recommend liquid, low-risk options that are easy to monitor. It’s this personalized approach that turns a simple account decision into a comprehensive family wealth strategy.
