Published May 20, 2026 4 Min Read

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Introduction

You can complete a mutual fund transfer by submitting the required documents to the AMC or depository participant (DP). The process depends on whether the transfer is between family members, nominees, or legal heirs after the investor’s death.

  • Mutual fund transfer usually happens through transmission, gift transfer, or succession claims.
  • Nominee transmission requires documents such as a death certificate, KYC proof, and transmission request form.
  • SEBI requires KYC completion before any mutual fund investment or ownership change.
  • Mutual fund units held in demat form can be transferred between DPs through off-market transfer instructions.
  • ELSS mutual funds continue to follow their mandatory 3-year lock-in period even after transfer or transmission.
  • Investors can explore 4,000+ mutual fund schemes across equity, debt, hybrid, ELSS, and thematic categories on the Bajaj Broking website.

Start your mutual fund investment journey on the Bajaj Broking website — complete KYC online, compare fund categories, and begin a SIP from Rs. 100 per month.

Why do people transfer mutual funds?


You may need to transfer mf units for different financial or legal reasons. The transfer method changes based on ownership type, nominee details, and whether the investor is alive.

Reason for transferWhat it meansCommon requirement
Nominee transmissionUnits move to the registered nominee after the investor’s deathDeath certificate and nominee KYC
Legal successionLegal heirs claim units when no nominee existsSuccession certificate or probate
Gift transferUnits are gifted to another personGift deed and transfer form
DP account transferUnits shift from one demat account to anotherDelivery Instruction Slip (DIS)
Family settlementOwnership changes during family asset divisionSettlement agreement

If mutual fund units are held jointly, the surviving holder usually becomes the owner after submitting the required documents. The AMC or registrar checks the folio details before processing the request.

Some fund schemes may have restrictions during lock-in periods. For example, ELSS funds continue to follow the mandatory 3-year lock-in period set under Section 80C rules.

What legal documents are needed for mutual fund transfer?


The documents required for a mutual fund transfer process depend on the reason for transfer. Most AMCs and registrars ask for identity proof, transfer forms, and ownership documents.

Follow these steps to complete the process:

  1. Collect the folio number, PAN card, and KYC documents linked to the mutual fund units.
  2. Download the transfer or transmission request form from the AMC or registrar website.
  3. Attach supporting documents such as a death certificate, gift deed, or succession certificate.
  4. Submit self-attested identity proof and bank account proof of the new unit holder.
  5. Verify signatures through the bank or notary if the AMC requests signature validation.
  6. Submit the completed documents to the AMC, registrar, or DP handling the mutual fund units.
  7. Track the transfer request through the Orders or Portfolio section available on the Bajaj Broking website.
DocumentWhen requiredWhy it matters
PAN cardAll transfersIdentity verification
KYC acknowledgementAll transfersSEBI compliance
Death certificateNominee transmissionConfirms investor death
Succession certificateNo nominee casesEstablishes legal heir
Gift deedGift transfersRecords voluntary transfer
Delivery Instruction SlipDemat transfersAuthorises DP transfer
Cancelled chequeBank verificationConfirms payout account

What should you check before transferring mutual funds?


Before you transfer mutual fund units to another person, check the ownership type, tax impact, and lock-in conditions. Some transfers may also require approval from the AMC or depository.

FactorWhat to checkWhy it matters
Holding modeDemat or physical unitsTransfer process differs
Tax impactCapital gains and gift tax rulesMay affect returns
Nominee detailsUpdated nominee informationReduces claim delays
Lock-in periodELSS or restricted schemesUnits may remain locked
Exit loadAMC exit conditionsCharges may apply on redemption
KYC statusSEBI-mandated verificationRequired for processing

Units transferred after death through nominee transmission usually do not attract immediate capital gains tax. However, tax may apply when the new holder redeems the units later.

You should also check whether the mutual fund scheme has an exit load. The AMC decides the exit load rules, and the charge is deducted from the redemption amount if applicable.

Conclusion

The mutual fund transfer process becomes easier when your KYC, nominee details, and folio information are updated in advance. Keeping the correct legal documents ready can help avoid delays during transmission or ownership changes.

Before submitting a transfer request, check whether the units are held in demat or physical form, as the process differs for each. On the Bajaj Broking website, you can monitor your portfolio, track fund holdings, and explore mutual fund schemes across equity, debt, hybrid, ELSS, and thematic categories.

Frequently asked questions

Can mutual funds units be transferred from one DP to another?

Yes, you can transfer mutual fund units from one DP to another if the units are held in demat form. You need to submit a Delivery Instruction Slip (DIS) to your existing DP with the target DP ID and client ID details. The transfer usually happens through an off-market transaction. You can track your mutual fund holdings and portfolio activity on the Bajaj Broking website after the transfer is completed.

Can I transfer mutual funds units to another person?

Yes, you can transfer mutual fund units to another person through gifting, nominee transmission, or legal succession. The process depends on the ownership type and whether the investor is alive. Most AMCs ask for KYC documents, PAN details, and transfer forms before processing the request. SEBI regulations also require valid identity verification for both parties involved in the transfer.

Do all mutual funds allow transfers between individuals?

No, not all mutual funds allow direct transfers between individuals. Units held in demat form are generally transferable, but statement-of-account holdings may only allow transmission or specific gift transfers. Some schemes, such as ELSS funds, also continue with their mandatory 3-year lock-in period after transfer. You should check the AMC’s scheme rules before starting the mutual fund transfer process.

Are there any charges involved in transferring mutual funds?

Yes, some charges may apply during a mutual fund transfer. Depository participants may charge fees for demat transfers, while stamp duty or notarisation costs may apply for legal documentation. AMCs usually do not charge for nominee transmission requests. However, exit load charges may still apply later if the transferred units are redeemed before the AMC’s specified holding period.

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