What is the procedure for gifting mutual fund units?

Units you already hold can be transferred to another individual. In non-demat mode, units can be transferred to a third party, to siblings, or gifted to a father, mother, son, daughter, spouse, granddaughter, grandson, brother or sister. All individual investors, excluding minors, are eligible to transfer units.

Units held in statement of account mode are transferred through a request to the registrar and transfer agent (RTA), such as CAMS or KFintech. Units held in demat mode are transferred through an instruction slip submitted to your depository participant.

Two things are not allowed:

• Gifting units to minors. Units cannot be transferred or gifted to a minor.
• Third-party payments. You cannot pay for an investment in someone else's name from your own bank account. A fresh investment must be paid for from the investor's own bank account.