Hi Srikanth
I am regular viewer of your site. I need your help about mutual fund transfers :
a. I would like to transfer some of my mutual funds to my wife's name. Is it possible ?
b. If it's not allowed what's the best option
c. Incase I have to sell and transfer will there be any TDS applicable on sale
The funds which I am holding is as under :-
a. Birla Sun Life MIP II Wealth Plan Growth
b. Birla Sun Life MIP II Wealth Plan Growth - Direct
c. Birla Sun Life Savings Fund - Direct plan
d. DSP Blackrock Focus 25 Fund (G) Regular Plan
e. DSP Blackrock Focus 25 Fund (G) Direct Plan
f. DSP Blackrock Micro Cap Fund (G) Direct Plan
g. DSP Blackrock Micro Cap Fund Regular Plan
h. Franklin India Smaller Comapnies Fund (G)
i. Franklin India Smaller Comapnies Fund Direct (G)
j. HDFC Balanced Fund (G)
k. HDFC Nifty ETF
l. ICICI Prudential MIP 25 (G)
m. Kotak Select Focus Fund Regular Plan (G)
n. Reliance Liquid Fund - cash plan -Direct Plan
Looking forward for your reply.
Thanks and Best Regards
Shreekumar
2 Answers
Dear Shreekumar,
Kindly note that the Units of a mutual fund cannot be transferred from one holder to another, nor can they be gifted by one person to another
If equity funds and have been held for over one year, then you can redeem these investments and invest the money all over again in your wife’s name. There will be no tax implication here. If the investments are less than 1 year old, then they will have tax implications because gains on investments held for less than 1 year are subject to 15 per cent short-term capital gains tax.
Kindly read :
https://www.relakhs.com/mutual-funds-taxation-rules-capital-gains-tax-rates-on-mfs-fy-201516/
https://www.relakhs.com/best-mutual-fund-scheme-risk-ratios/
https://www.relakhs.com/mutual-fund-portfolio-overlap-comparison-tools/
Please login or Register to submit your answer