All you need to know about gifting of mutual fund units
Gifting of units is allowed to family members like spouse, son, daughter, dependent parents/In-laws by individuals and NRIs.
Dec 2025
3 mins read
Share:
Gifting mutual fund units is a popular way to share wealth among family members or loved ones. While the process is straightforward, there are certain rules, tax implications, and eligibility criteria that investors must understand before initiating a transfer. This article covers everything you need to know about gifting mutual fund units.
Gifting of units is allowed to family members like spouse, son, daughter, dependent parents/In-laws by individuals and NRIs. Let’s look at the tax implications, which schemes are eligible for gifting and where you can avail this facility.
Eligibility
You can opt for this facility for all schemes except Exchange Traded Funds (ETFs) and Children’s schemes and Retirement schemes (Solution Oriented schemes) which have age criteria and is applicable only for units held in Non-Demat (SoA) mode. Transfers involving minor folios and vice versa are not allowed. In Equity Linked Savings Scheme (ELSS), transfer can be done after the expiry of 3-year lock-in period. There will be no lock-in period applicable for the transferee and no tax exemption under Section 80C can be claimed by the transferee (person who receives the units) on such units.
Tax treatment
Capital gains will be applicable to the transferee since it is considered sale for the person who is transferring and purchase for the person receiving it. Securities Transaction Tax (STT) will not be deducted as these are treated as off-market transactions. Gifting of units to siblings and to third parties have differential treatment on applicable taxes. Hence, investors are requested to review the tax implications with their tax consultant before choosing the reason for transfer.
Where to avail this facility?
Gifting facility can be availed only through online mode through channels like Registrar and Transfer Agent (RTA) website/digital portals (CAMS, KFintech) or AMC’s official website/ Digital portals. You can initiate the gifting process through these websites:
• https://digital.camsonline.com/transfer
• https://mfs.kfintech.com/transferofUnits/
Process
You can either initiate a full or partial transfer (either number of units or percentage share). You can add up to 2 joint holders on a single holding folio or 1 joint holder for a folio with a single joint holder. If the transferee’s folio is under single holding, it is mandatory to register a nominee, or submit an opt-out declaration.
Select the mutual fund and the folio for which you want to initiate transfer of units. Please note only folio which are of Single, AS- Anyone or survivor, ES - Either of survivor mode of holding and those that qualify all validation (KYC, nominee availability, NSDL) will be eligible for transfer of units.
Enter your details like PAN, email id and you will receive OTP on both. After entering these OTP, you have to select the fund house and the folio from the drop down menu.
Select the percentage or number of units and scheme name. Enter transferee PAN, email, mobile number, folio number, to verify the transferee. Lastly, initiate the transfer. Post successful validation of the OTP, you will be required to pay stamp duty from your registered bank account.
Once the transfer is effected, intimation of transfer is sent to the transferor and transferee through email, SMS, and an statement of account to the registered address. Typically, it takes 2 working days for RTAs to effect the transfer.
Summing up, gifting is an easy online process which can be done through RTA websites or AMC’s official website/Digital portals.
Share:
PGIM India Asset Management Private Limited
(CIN - U74900MH2008FTC187029)
Toll Free Number: 1800 209 7446
Email: care@pgimindia.co.in
This is an Investor Education and Awareness Initiative by PGIM India Mutual Fund.
All the Mutual Fund investors have to go through a one-time KYC (Know Your Customers) process. Investor should deal only with the Registered Mutual Funds (RMF). For more info on KYC, RMF and procedure to lodge/redress any complaints, visit https://www.pgimindia.com/mutual-funds/ieid.
MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY. Read more
All the Mutual Fund investors have to go through a one-time KYC (Know Your Customers) process. Investor should deal only with the Registered Mutual Funds (RMF). For more info on KYC, RMF and procedure to lodge/redress any complaints, visit https://www.pgimindia.com/mutual-funds/ieid.
MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY. Read more
The information contained herein is provided by PGIM India Asset Management Private Limited (the AMC)
on the basis of publicly available information, internally developed data and other third-party
sources believed to be reliable. However, the AMC cannot guarantee the accuracy of such information,
assure its completeness, or warrant such information will not be changed. The information contained
herein is current as of the date of issuance* (or such earlier date as referenced herein) and is
subject to change without notice. The AMC has no obligation to update any or all of such
information; nor does the AMC make any express or implied warranties or representations
as to its completeness or accuracy. There can be no assurance that any forecast made
herein will be actually realized. These materials do not take into account individual
investor's objectives, needs or circumstances or the suitability of any securities,
financial instruments or investment strategies described herein for particular investor. Hence,
each investor is advised to consult his or her own professional investment / tax advisor / consultant for advice in this regard.
The information contained herein is provided on the basis of and subject to the explanations, caveats and warnings set out elsewhere herein.
The views of the Fund Manager should not be construed as an advice and investors must make their own investment decisions regarding investment/ disinvestment in securities market and/or suitability of
the fund based on their specific investment objectives and financial positions and using such independent advisors as they believe necessary.
