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  5. How to gift Mutual Funds to loved ones this New Year 2026

Personal Finance News

How to gift Mutual Funds to loved ones this New Year 2026

Upstox
By Upstox News Desk

3 min read | Updated on December 29, 2025, 13:34 IST

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SUMMARY

Instead of chocolates or flowers, give your loved ones the gift of financial growth. Here’s how to gift mutual fund units online or offline and make this New Year truly meaningful.

Mutual Funds gifting

Gifting mutual fund units is not only smooth and convenient but also encourages financial planning. | Image: Shutterstock

In just two days, we will welcome 2026. While gifting cakes, chocolates, bouquets, and showpieces is common during the New Year, this year, you can consider giving something more meaningful like mutual fund units.

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Gifting mutual fund units is not only smooth and convenient but also encourages financial planning among your family or close relatives. The best part? You can gift units online or offline without requiring a demat account.

How to gift Mutual Funds online

Online transfer means gifting mutual fund units digitally through official platforms without visiting any branch.
Where can it be done

  • MF Central

  • CAMS Online

  • Mutual fund house websites

  • Broker platforms (where gifting is enabled)

Steps to gift MF

  • Log in to the platform.

  • Select Gift/Transfer of Units.

  • Enter donor and recipient details (PAN, KYC, bank).

  • Choose a scheme and units.

  • Authenticate via OTP.

Units are credited to the recipient’s folio (usually within 1 working day).

How to gift Mutual Funds offline

  • Get the ‘Off-Market / Mutual Fund Gift / Transmission Form’ from the fund house or registrar (CAMS).

  • Fill in details like donor information (name, PAN, folio number) and recipient information (name, PAN, bank details, KYC). Mention the number of units and the scheme name.

  • Submit PAN and KYC of both donor and recipient.

Once the registrar processes the form, units are credited to the recipient’s folio. You will receive a confirmation letter or email.

Are Mutual Fund gifts to relatives taxable?

Gifting mutual fund units to certain relatives is tax-free for both the donor and recipient:

Section 47 of the Income Tax Act, 1961 states that transferring capital assets as a gift is not considered a “transfer”, so the donor does not incur capital gains tax.

Section 56(2)(x) exempts gifts from tax in the hands of the recipient if the donor qualifies as a “relative.”

If the recipient sells the units later, capital gains tax will apply:

Cost of acquisition: Original purchase price paid by the donor.

Holding period: Uses the donor’s holding period to determine short-term or long-term capital gains.

Why gift Mutual Funds?

Mutual fund units are a thoughtful, practical, and long-lasting gift. Unlike cakes or bouquets, they grow in value over time and help inculcate financial planning habits early in life.
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Disclaimer: This article is written purely for informational purposes and should not be considered investment advice from Upstox. Investors should do their own research or consult a registered financial advisor before making investment decisions.
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About The Author

Upstox
Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.

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