SEBI makes gifting mutual funds simpler—and more tax-friendly
SEBI just rolled out a new rule that makes it way easier to gift mutual funds.
Now, you can transfer your mutual fund units directly—no need to redeem them first, which means no capital gains tax hassle.
This is especially handy if you want to pass on investments to family members in lower tax brackets.
Quick, easy transfers and smarter tax planning
Previously, only demat-held units could be transferred easily; others needed costly redemption.
With the update, both demat and statement of account units can be gifted smoothly.
According to city-based financial adviser Mumukshu Desai, "just a link and two OTPs do the trick."
Financial advisors say this opens up smarter ways to plan taxes by shifting gains to family members who don't have taxable income.
Gifting or inheriting mutual funds just got a whole lot simpler for everyone.