Mutual fund units are non-transferable that means one cannot directly gift mutual fund units. So, gift of mutual fund unit is not possible. But there are two alternative option is available that can be used to meet the purpose.
1. Invest in their name: First redeem the investment by the person who wants to gift and transfer the amount to the person’s bank account to whom he wants to gift. In case the person to whom gift is made is below 18 years their legal guardian, typically their mother or court – appointed representative, can manage their investment. Following this transfer the receiver of amount can initiate their own mutual fund investment through his/her own bank account.
2. Designate them as nominee: In this option, maintain mutual fund investment in his/her own name while designating the person as nominee to whom you want to gift. This arrangement ensures that in the event of your unfortunate passing, the ownership of the mutual fund units will automatically transfer to nominee.
No comments:
Post a Comment