Hi Team,
I am investing in couple of Direct Mutual Funds through MFU platform. Can I transfer the units from MFU to Zerodha into my father’s zerodha account? If yes, then will there be any loss associated with that?
If you are holding units in non-demat form then these units will first have to be dematerialised into your demat account and then can be transferred to your father’s demat account. It will be easier to transfer the units to your father’s account if you have opened the demat account through us. There will be no loss incurred for such transfers but there will be dematerialisation charges for each mutual fund.
You can click on this link to know more about the charges.
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Thanks faisr for your response. Few follow-up questions:-
Consider me and my father both have zerodha account and I being a NRI, plan to invest through my father. Later down the line when I return back to India permanently
a) Can the MF Units accumulated in my fathers account be transferred to my account?
b) If yes, then what’s the cost and procedure of transfer?
c) Once the transfer is done, can I continue with the ongoing SIP’s which he was doing?
P.S. -
a) One way I know is to sell the accumulated MF Units from his account and buy it from my account.
b) I heard from someone that we cannot transfer the MF Units in such case during the lifetime of my father. Post that it can be done if I am Nominee in his zerodha account (100%)
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a) Yes, you can transfer the units once you have opened your account with Zerodha.
b) For each ISIN or mutual fund scheme, you would have to pay 0.03% or Rs 25 (whichever is higher) of the current value. For example, if the current value of a mutual fund scheme is Rs 100000 (at the time of transfer request provided to us) then the transfer cost would be Rs 30
c) Once, the units are transferred and updated in your portfolio on COIN then you can continue investing in these schemes via SIPs through your account.
d) There is no such restriction.
@faisr @Bhuvan
A query. Will the AMC’s update the holder details ( like Name, PAN no. etc ) in their database as well once the transfer is done from one demat account to another.
Like if I transfer MF’s from my demat account to father’s, will the AMC’c update the details?
Also what will be the folio no. in the new account. Same or different?
Just skeptical since I don’t want to face any issues due to data mismatch at the time of redemption.
Will really appreciate if you reply to this query. Thanks.
You won’t face any issues 
This isn’t clear.
Are you suggesting to the original query author that there no tax repercussions of transferring MF first to father and then later back to him??