Mutual Fund Ownership Transfer

POSTED BY Sunil Kumar ON September 13, 2011 11:51 am COMMENTS (9)

Hi All,

I want to transfer the ownership of couple of Mutual Funds from my name to my wife’s name?

 

Kindly help

Cheers

 

9 replies on this article “Mutual Fund Ownership Transfer”

  1. Sunil

    Lets get back to what Abhishek is suggesting and the point which you didnt like ..

    Actually there are couple of things you should be clear with and it will help you take decision .

    There is no need to sell off your holding through demat account.. You can redeem them in normal manner .. just fill a redeemption sheet with AMC or with CAMS and you will get your money in 3-4 days … and then reinvest the money .

    The best thing about this is that you will make a notional loss of Rs 20 per share … (as per your example) and you will be able to set it off against some profit for next 8 yrs..

    This is just a notional loss and not a real loss , because you are again buying it around the same cost for your wife .. its in a way “holding” only ..

    Regarding transfer of mutual funds to wife , it wont help you from taxation point, not even gifting will help , if she is not working … gifting does not work iin case of spouse and minor children ..

    So why do you want to transfer it to your wife name ?

    Also i am not sure about the transfer part ! .. If we can really just transfer some asset like this without getting into tax dirt !

    Manish

  2. Anand says:

    How can one buy back on the same day as he has sold MF units?

    If we redeem some units, then don’t we have to wait till money is credited to bank account?
    Please clarify.

  3. TheZionView says:

    @sunil

    The answer is still same.

    1. What if i have to transfer it to someone else?
    Sell and Buy on the persons name on same day (only if you are not in demat form)

    2. I loose on Trading charges and entry exit load. Which could go upto 3%. Which means for a portfoilo of 20 Lac it is?????…..

    If you are holding in Demat format then the brokerage and other charges apply which is not good i agree.

    3. Out of 10 MF (e.g.) the person does not want to sell neither does he want to buy AGAIN the
    same MF. He is ok with Just HOLDING.

    If its not in Demat then selling (without exit load ie after 12 months for most of the MFs) and buying back is only option currently available and It will not matter if done on the same day for same MF. Selling and Buying back on same day in another person can still be considered HOLDING.

  4. Sunil Kumar says:

    here are the points:

    1. What if i have to transfer it to someone else?
    2. I loose on Trading charges and entry exit load. Which could go upto 3%. Which means for a portfoilo of 20 Lac it is?????…..
    3. Out of 10 MF (e.g.) the person does not want to sell neither does he want to buy AGAIN the
    same MF. He is ok with Just HOLDING.

    I do not want to divert the conversation from the ORGINAL concern of TRANSFER OF MF UNITS. PLS PLS only supply answer for the same.

  5. TheZionView says:

    Its not a stupid stuff. If you Redeem and buy back on same day it wont make a difference to your fund or no of units. You will have the required name change that way

  6. Abhishek says:

    HI Sunil,

    From what I know, this facility is not available..You can transfer units only in case of death. OR in a listed FMP or Closed ended fund where you can sell the units to your wife on the exchange.

    Do let us know if there is any other option..?

    Also, keep in mind the clubbing provisions, when your wife buys the units after you redeem them.

    If these are Equity Fund units, just keep it that way instead of doing the stupid stuff..

    Regards
    Abhishek

  7. Sunil Kumar says:

    Abhishek your answer does not makes sense. I bought MF units at say 100 Rs and now it is 80 rs , you are saying i should book a loss of 20Rs ??
    So my transfer cost is 20Rs….
    I would prefer following the WHOLE procedure of documentation rather then doing the above stupid stuff.

    1. Ramesh says:

      If you bought @ 100, and the current value is 80.
      then selling and buying @80 wont cause any difference, for you. Its just the name has changed.
      How is that stupid??

  8. Abhishek says:

    Hi Sunil,

    Instead of going through the whole procedure of doing this through documentation. I would recommend REDEEM all units when there is no exit load and Re Invest it on your wife’s name.

    Regards
    Abhishek

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