Perccent

You’ve carefully built your mutual fund portfolio. But life keeps moving—jobs change, brokers evolve, goals sharpen. When that happens, many investors want to transfer mutual fund holdings: shift units from one account to another, move between demat and non-demat (SoA) modes, or even change the platform they use.

Good news: with the right steps, you can transfer mutual funds without messing up your long-term plan.

This guide shows you exactly how—simply and safely.

Why this matters

Investors are more platform-savvy than ever. You might want a single view of all investments, lower costs, better customer support, or a platform that aligns with your goals. Regulation has also evolved. 

For example, units held in non-demat (SoA) mode can now be transferred without first dematerialising them, subject to standard checks. That’s a big convenience upgrade for investors who prefer to keep units directly with the fund registrar.

First principles: what is a “mutual fund transfer”

A mutual fund transfer is moving the same units of a scheme from one holding setup to another. You aren’t buying fresh units; you’re shifting existing ones. 

That could mean:

• Within the same owner: moving units from one demat to another demat, from non-demat (SoA) to demat, or demat to non-demat.
  
• Between platforms: for instance, transfer mutual funds from one broker to another by using an off-market transfer through your depository participant (DP).
  
• Change of ownership (e.g., gifting): allowed in specific cases; tax rules apply.

It’s different from a switch (redeeming one scheme and buying another), which creates a taxable event. A transfer, by contrast, usually doesn’t trigger capital gains unless you actually redeem or sell the units, but gifting rules and stamp duty can still apply.

The process at a glance (before we go deep)

1. Confirm your current holding mode (demat with NSDL/CDSL, or non-demat/SoA with the registrar—CAMS or KFintech).
   
2. Decide the destination (another demat account, or SoA; same PAN/ownership, or a permitted ownership change).
   
3. Choose the right route:
   
   • Demat → Demat: Off-market transfer via your DP using a Delivery Instruction Slip (DIS) or e-DIS.
     
   • Demat → Non-demat (SoA): Rematerialisation request via your DP; registrar issues a Statement of Account.
     
   • Non-demat (SoA) → Demat: Dematerialisation via Conversion Request Form (CRF) through your DP.
     
   • Non-demat → Non-demat: Standard transfer request through the registrar as permitted.
     
4. Match key details (PAN, holder names/order, bank, nominee).
   
5. Track and confirm (registrar/DP will update and reflect units at the destination).

We’ll now unpack each route with clear steps.

How mutual fund transfers actually work

A. Demat → Demat (including transferring mutual funds from one broker to another)

If your units sit in demat, your DP (the broker or bank that runs your demat) executes an off-market transfer. You’ll fill a DIS—a pre-printed slip—or use an e-DIS workflow. You’ll enter the ISIN for the mutual fund scheme/plan, quantity, and the destination demat details. The DP transmits it via NSDL/CDSL. 

Typical checks include matching PANs and holder sequence (single/joint). This route is commonly used when you transfer mutual funds from one broker to another without selling them.

Example: Meera has her equity fund units in Demat with Broker A (NSDL). She moves to Broker B for better reporting. She submits a DIS to A, quoting B’s demat details and the ISINs. Within a few days, the units appear under Broker B—no redemption, no exit load, and no capital gains event.

B. Demat → Non-demat (SoA)

This is called rematerialisation. You instruct your DP to rematerialise your mutual fund units. The registrar (CAMS/KFintech) then issues a Statement of Account (SoA) in your name; thereafter, your holdings become non-demat. 

Investors choose this to transact directly with the fund house/registrar or to simplify beyond a broker interface. Turnaround times vary by DP/registrar; you’ll usually submit a request form and pay a nominal fee if applicable.

Example: Rohan prefers receiving consolidated email statements from the registrar and transacting directly via AMC/registrar portals. He files a remat request with his DP. A week later, his units show up as SoA with CAMS, and he can transact without a broker front-end.

C. Non-demat (SoA) → Demat

This is dematerialisation. You collect a Conversion Request Form (CRF) from your DP, attach your latest SoA, and submit. The registrar confirms the units and transfers them into your demat. After that, you’ll see them under your broker or bank’s demat interface. 

This route is helpful when you want a single portfolio view across shares, ETFs, and mutual funds.

Example: Saira’s long-held debt fund units are in SoA with KFintech. She now wants everything in one demat account. She files a CRF with her bank-DP, and within the stipulated TAT, the units show up as demat holdings.

D. Non-demat (SoA) → Non-demat (SoA)

This is a registrar-facilitated transfer—useful when you want to shift units between folios/platforms without converting to demat. Under industry guidelines, SoA units can be transferred subject to KYC/ownership checks. The registrar provides the form and process; ensure PAN, holder order, and bank details align. 

This is particularly handy if you prefer registrar/AMC portals over brokers.

Example: Dev holds units in SoA with CAMS but wants to consolidate folios and change the servicing platform. He raises a transfer request with CAMS, and the units move to his desired folio without demat conversion.

“Can mutual funds be transferred?”

• Can mutual funds be transferred? Yes—across demat ↔ non-demat and between demat accounts (off-market). SoA units can also be transferred as permitted by registrars.
  
• How to transfer mutual funds from one broker to another? Use off-market transfer via your DP with a DIS/e-DIS, quoting ISIN and destination demat.
  
• Can we transfer mutual funds to another person? Possible in specific scenarios (e.g., gifts, transmission on death). Gifts have tax rules under Section 56(2)(x).  Transmission follows AMC/registrar processes.

Step-by-step “How-to” sections

1) How to transfer from one non-demat (SoA) to another non-demat (SoA)

Start by confirming KYC status and holder details (PAN, names, order). Reach out to the registrar (CAMS/KFintech) handling your folio. Submit the designated transfer request form with proof of existing units (SoA) and destination folio details. The registrar verifies KYC and bank/nominee details, processes the transfer, and issues an updated SoA at the destination. This is a neat transfer mutual fund route if you prefer staying outside a demat.

2) How to transfer from Demat to Non-Demat (SoA)

Ask your DP for a rematerialisation request. You’ll specify the scheme/ISIN and quantity you want to remat, and attach any supporting statement if asked. The DP forwards it to the registrar, who cancels the demat units and issues a Statement of Account in your name. Track the request using the DP reference; once complete, future transactions happen via AMC/registrar channels. This transfer of mutual fund route makes sense if you want direct registrar access and fewer broker dependencies.

3) How to transfer from Non-Demat (SoA) to Demat

Collect a CRF (Conversion Request Form) from your DP, attach the latest SoA, and submit the originals if required. The DP validates your details and sends the request to the registrar. After verification, the registrar moves units into your demat; you’ll see them under your broker’s holdings. 

This is the classic “how to transfer mutual funds” step when consolidating everything under one demat for a cleaner view.

When does it make sense to initiate a transfer?

You don’t transfer for the sake of motion—you transfer to improve control.

• Consolidation for clarity: If your units are scattered across multiple platforms/registrars, transferring to a single demat or SoA can simplify tracking and paperwork.
  
• Platform switch: Better goal tools, reporting, or service can justify transfer mutual funds from one broker to another rather than redeeming and repurchasing.
  
• Mode alignment with your style: Prefer AMC/registrar portals and SoA emails? Go SoA. Want everything—stocks, ETFs, and funds—together? Go demat.
  
• Operational reasons: Joint holders, bank change, or nominee alignment sometimes push a change in holding mode or platform.
  
• Ownership change (gifts/transmission): Family re-alignment, estate planning, or moving units to a spouse/child (gift) or to nominees (transmission) can be legitimate reasons—just mind the tax rules.

Once you know why you’re moving, it’s easier to pick the how and avoid unnecessary tax/cost friction.

Things to check before you transfer

• KYC & PAN: Ensure KYC is active and PAN matches on both source and destination. A mismatch delays processing.
  
• Holder pattern: Single vs joint, and the order of holders must match when moving between accounts. Changing holder sequence typically isn’t a “transfer”—it may require addition/deletion procedures and fresh KYC.
  
• Bank & nominee: Keep bank/IFSC and nominee up to date so redemptions/dividends post-transfer land correctly.
  
• ISIN/scheme/plan: Confirm the exact ISIN (especially for direct vs regular, growth vs IDCW). Using the wrong ISIN on a DIS will bounce the request.
  
• Registrar (CAMS/KFintech): Knowing who services your folio helps you go faster on SoA-based transfers or for tracking TATs.
  
• Locks/pledges: Ensure units aren’t pledged or locked (e.g., loan collateral), which can block transfers. Your DP can confirm the status.
  
• Cut-offs & corporate actions: Transfers in flight may temporarily affect your eligibility window for IDCW payouts or splits; time your request accordingly.

Understanding Costs and Taxes in Transfers

Let’s separate costs from taxes so there’s no confusion.

Possible costs

• DP/Registrar charges: DPs may levy nominal off-market transfer or (re)materialisation fees; registrars typically don’t charge investors for SoA issuance but may have process-linked fees. Check your DP schedule and registrar page beforehand.
  
• Stamp duty on transfers: Off-market transfers can attract stamp duty, depending on the nature of transfer and state rules. Your DP’s off-market process (DIS) provides the applicable classification and charges summary before execution.

Tax implications

• Pure transfer, same owner: Moving units Demat↔Demat or Demat↔SoA under the same PAN/ownership is typically not a taxable event by itself because there’s no sale/redemption. Tax arises when you redeem/sell later.
  
• Gifting units: Can we transfer mutual funds to another person? Yes—by gift/off-market transfer. But Section 56(2)(x) applies: gifts from specified relatives are exempt for the recipient; gifts from non-relatives can be taxable if the aggregate fair value exceeds ₹50,000 in a year. (The recipient pays tax under “Income from Other Sources.”)
  
• Cost & holding period after gift: For the recipient, the cost of acquisition and holding period generally carry over from the donor for capital gains on future sale (long-term/short-term classification depends on the original holding). This follows general principles under the Income-tax Act for assets received by way of gift/inheritance (consult your tax advisor for your case).
  
• Redemption/switch: If you switch schemes, it’s treated as redemption + purchase—that is, a taxable event (capital gains apply).
  
• IDCW (dividends): IDCW is taxable in the hands of the investor at slab rates; TDS may apply for certain categories of investors. (We’re keeping the focus on transfers; check your AMC’s tax note for IDCW specifics.)

Tip: If the purpose is simply a platform change, prefer a transfer mutual fund route over switching/redemption to avoid triggering immediate capital gains.

Key benefits of transferring (and not redeeming)

• Continuity: You preserve your original investment date and holding period, which can help with long-term capital gains eligibility when you finally redeem.
  
• Avoid exit loads: Many schemes have exit loads for recent purchases. A transfer avoids a redemption that could otherwise attract loads.
  
• Operational convenience: Consolidating under one mode (demat or SoA) makes life easier—fewer logins, cleaner reports, faster service.
  
• Better fit to your style: If you’re hands-on with markets, demat + broker tools can help. If you like direct AMC/registrar flows and email SoAs, non-demat is calmer.
  
• Goal alignment: When you transfer mutual fund units into a platform designed around goals and baskets, you get clarity: what each investment is for, how far you’ve come, and what to do next.

Quick recap

If you remember just three things, remember this:

1. Transfers are possible and practical—SoA↔Demat and between demat accounts (off-market). SoA-to-SoA is also facilitated by registrars.
   
2. Pick the right route: DIS/e-DIS for demat transfers, CRF for SoA→Demat, remat for Demat→SoA, registrar form for SoA→SoA.
   
3. Mind the details—KYC/PAN, holder order, ISIN, nominee—so your transfer mutual fund request sails through. Stamp duty and DP fees may apply; taxes matter mainly on gifts/switches or when you finally redeem.

Conclusion

You’re not moving units just to move them. You’re moving them to see your money more clearly and to invest with purpose. 

Perccent helps you do exactly that—goal- and basket-based investing designed for everyday investors across India. If you’re planning to transfer mutual fund holdings, it’s the perfect moment to organise them by goals, track progress simply, and invest with confidence.

FAQs

1) Can mutual funds be transferred at all, or do I have to redeem? 

Yes, you can transfer mutual funds—Demat↔Demat (off-market via DIS/e-DIS), SoA↔Demat (CRF/remat through DP), and SoA↔SoA (via registrar). You do not need to redeem just to change platforms or holding modes. Redeem only if you’re changing the investment itself (e.g., switching schemes) or need cash.

2) How to transfer mutual funds from one broker to another without taxes? 

Keep ownership the same and use an off-market transfer through your DP. Because there’s no sale/redemption, you generally don’t trigger capital gains at the time of transfer. Taxes will apply only when you redeem later, based on holding period and scheme type. Your DP can confirm any fees and stamp duty.

3) Can we transfer mutual funds to another person—like gifting to a spouse or adult child? 

You can, typically via an off-market transfer (demat) or registrar route (SoA). For tax: under Section 56(2)(x), gifts from specified relatives (e.g., spouse, parents, siblings) are exempt for the recipient; gifts from non-relatives can be taxable if the total value exceeds ₹50,000 in a year. Future capital gains for the recipient usually consider the original cost and holding period. Consult a tax professional for your situation.

4) What documents do I need for a demat transfer (DIS)? 

Your DIS requires the ISIN, security name, quantity, and the destination demat details. Sign as per your demat account, and ensure holder sequence matches. Many DPs support e-DIS to make this faster; check your broker’s help page for screenshots and field-by-field guidance.

5) I prefer registrar/AMC portals. Should I stay in SoA or move to demat? 

If you like dealing directly with the registrar and getting SoA-based statements, SoA works well. If you want a single dashboard with stocks/ETFs/funds under one login, demat is convenient. The good part is you can transfer mutual fund units both ways—SoA→Demat (CRF) and Demat→SoA (remat)—based on how you prefer to operate.

6) Is there any timeline I should expect? 

Turnaround times depend on the DP/registrar and the specific instruction (off-market transfer vs CRF vs remat). Registrars publish indicative TATs and note that demat-holder requests are routed via DPs and may follow their own schedules. For smoother processing, ensure KYC and holder patterns match before you start. 

Disclaimer:

Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully before investing. The examples and scenarios shared in this article are for educational purposes only and are intended to help parents and individuals make informed decisions. They do not constitute financial advice or a recommendation. For personalised investment planning — especially when investing for your child’s future — please consult a certified financial advisor or distributor.