Frequently Asked Questions on Transfer of Units
Recent regulations have simplified the process for both demat and non-demat units, making it entirely online in some cases.
Dec 2025
3 mins read
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Q1 Where can we find the option to transfer the units?
The facility can be availed only through online mode, Option is enabled in KFintech, MFCentral. Please click here https://mfs.kfintech.com/transferofUnits/
Q2 What are the options available for the investors?
• Surviving joint unitholder can add a new joint holder in the folio following the demise of one of the unitholders.
• Nominee of a deceased unitholder can transfer the units to the legal heirs of the deceased unitholder.
• Minor unitholder who has turned a major & has changed the status to major can add the name of the parent / guardian / sibling/spouse in the folio.
• Transfer of units to third party
• Transfer to siblings [Brother/Sister]
• Addition of holder(s)
• Deletion of holder(s)
• Gifting of units [Father/Mother/Son/Daughter/Spouse]
Q3 What are the pre-requirements for transfer of units?
• KYC status of all the holders(s) should be KYC Validated, both in the transferor and transferee folio(s)
• All Individual investors (excluding minor) are eligible to transfer the units
• All Folios with Unit balance, with the Tax status of RI/NRI excluding Minor are allowed.
• Folio should be in- non-demat mode as on the date of transfer
• Only Free Units are allowed to transfer
• The transferee must possess an existing folio with the fund house. If a folio is not available, the transferee is provided with the option to create a new zero balance folio during the transfer process on the website.
• Email / Mobile number is required for all the unit holder(s) in case of transfer of units.
• Nomination / Opt-out declaration is mandatory in transferee folio (especially for single holding).
Q4 Can I transfer the units from all the schemes I have in my folio?
Yes, only free units from all the schemes (including ELSS schemes) are eligible for transfer, However Units under the ETF (Exchange Trader Fund) and Units under Solution oriented schemes such as Children’s schemes and Retirement schemes having eligibility criteria of age are not allowed under this facility.
Q6 How should I pay the stamp duty?
Stamp duty will be calculated at the rate of 0.015% and to be borne by the transferor. Stamp duty shall be paid by the transferor from his registered bank account in the folio, during the transfer process. Stamp duty is rounded off to INR 1, if it is less than INR 1.
Q7 How do you validate the transfer request?
Transferor and Transferee’s acceptance are confirmed through different OTPs sent to their email ids/mobile numbers.
If there are multiple holder(s) available in the folio, OTP confirmations are taken from all the holder(s) as applicable.
Q8 How can I add or delete a joint holder(s) in my folio?
Investor can add joint holder(s), by choosing an existing folio or by creating a new folio, where the first holder should remain the same in both the transferor and transferee folio. New holders can be added, subjected to the pre-validations stated above, and OTP confirmations are mandatory from all the holder(s) available in the folio.
Investor can delete joint holder(s), by choosing an existing folio or by creating a new folio, where the first holder should remain the same in both the transferor and transferee folio. OTP confirmations are mandatory from all the holder(s) available in the folio.
Q9 Can I transfer my units from my RI folio to NRI folio?
Transfer of units from an RI/NRO folio to NRE account is not allowed. Transfer of units from a RI to NRO folio with NRO account and vice versa are allowed.
Q10 Can I gift my mutual fund units to my friend?
Units can only be gifted to Father, Mother, Son, Daughter, and Spouse of the primary holder in transferor folio
Q11 Can I do multiple transfers through a single request?
Multiple transfers are permitted; however, the investor must submit separate requests for each individual transfer.
Q12 Is partial transfer of units allowed?
Yes. Partial transfer of units is permitted. For example, gifting or transferring a specific number of units to siblings or third parties can be done, subject to scheme minimum balance requirements. If the balance units in the transferor’s folio falls below specified threshold / minimum number of units as specified in the Scheme Information Document (SID) of the respective MF scheme, such residual units shall be compulsorily redeemed, and the redemption amount will be paid to the transferor.
Q13 Is nomination mandatory?
Yes. If the transferee’s folio is under single holding, it is mandatory to: • Register a nominee, or • Submit an opt-out declaration.
Q14 What are the modes of communication and verification during the transfer process?
The communication process remains similar to Phase I. This includes:
• Different OTPs to the transferor's email/mobile to get confirmation for executing the transfer.
• In case of joint transferor(s), OTPs will be sent to the mobile number(s) and email ID(s) of each joint holder as registered in the KRA/KYC database, and all holders will need to authenticate the transaction.
• Upon acceptance of the transfer entry, a confirmation mail is triggered to the transferor.
• In case of NIGO (Not In Good Order), a rejection mail is transferred to the transferor detailing the reason for rejection.
• Upon completion of the Transfer process (posting at Back Office), SoA is triggered to the transferor and transferee.
Q15 Can such transfers be initiated during IDCW Record Date?
Yes, If the transfer is initiated on the record date, IDCW payout/reinvestment will be made to the transferor.
Q16 Can transferee redeem the units immediately after transfers?
No. Redemption of the transferred units shall not be allowed for 10 days from the date of transfer.
Q17 Are these transfer transactions are reported to Income Tax/CBDT?
Yes. As is the case with off-market transfer of demat units, transfer of units in SoA mode will also be considered for reporting in SFT in the Income Tax portal. RTA shall report these transfers based on date of processing transfer with gain computed based on the consideration amount. The transferor may use this only for reference and should file returns using the actual gain and applicable TDS on which AMC/RTA will not have any control.
(Source: KFin Technologies Limited)
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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
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