Can a partnership firm invest in shares and mutual funds?

Yes, a partnership firm is allowed to invest in shares and mutual funds by opening a trading and Demat account in the name of the firm. The investments made through this account are considered assets of the partnership firm and are jointly owned by all the partners. Such investments must align with the firm’s objectives as stated in the partnership deed. Proper documentation and KYC compliance for all partners are necessary to complete the investment process smoothly.