Gifting mutual funds has become easier now

Summary: You can now gift your mutual fund units more easily. Whether it’s for a loved one or a friend, SEBI’s latest move has made it simpler to share your investments online. Here’s how it works and what you should know before you do. Planning to gift your mutual fund units? You are in luck. SEBI has made it easier to transfer or gift your mutual fund units to your loved ones, friends or anyone else you wish. But wasn’t the gifting of mutual funds allowed earlier? Yes, it was, but the rules weren’t as straightforward. You could only gift mutual funds if your investments were held in a demat account. As a result, most mutual fund investors, who maintained their investments in an SoA (Statement of Account) format, were left out. Thus, their only options were either to open a folio in the other person’s name and invest on their behalf, or add them as a nominee to their investments. A change for good Last year, SEBI made it easier for SoA account holders to transfer or gift their mutual fund units, without needing to convert them into demat form. And the best part? The process can be completed entirely online, via MF Central or other platforms, such as CAMS. However, keep in mind that the person to whom you are gifting your mutual fund units should have a folio with the same fund house as yours. How to gift mutual f

This article was originally published on August 20, 2025.