I want to gift my daughter the units of a mutual fund in which I had invested a decade ago. How can I go about this?
Raj Madhavan, Chennai
Your desire to gift the units in a fund that you are invested in is commendable. However, the only scenario in which mutual fund units can be transferred from one folio to another is in the case of the demise of the unit holder. This is not applicable for you. The only way out for you to transfer or gift your daughter units in this fund is by redeeming your investments in this fund and then transferring the proceeds to your daughter’s bank account, from which she can invest. This may seem a circuitous approach; however, this is how it works because mutual funds are also not allowed to accept ‘third-party’ payments, which means you cannot use money from your wife’s bank account to make investments in your name.
