Is it possible to gift mutual funds?
James Craig
Published Apr 02, 2026
a) Transfer of mutual funds is a grey area since as per the Securities and Exchange Board of India’s (SEBI) regulations, 1996, transfer of mutual fund units is allowed. So the concept of gifting mutual fund units also is a hypothetical one and is practically not possible.
Which mutual fund is best for child?
Mutual Funds For Child’s Education With SIP Investment
| Fund name | 1 year | 5 year |
|---|---|---|
| UTI CCF- Investment Plan | 59.04% | 14.67% |
| HDFC Childrens Gift Investment Plan | 48.06% | 16.02% |
| Axis Childrens Gift Fund – No Lock-in | 37.82% | 14.54% |
| LIC MF Childrens Fund | 33.91% | 8.52% |
So the concept of gifting mutual fund units also is a hypothetical one and is practically not possible. In fact, ‘third party’ payments are not accepted by mutual funds. In no way can one use his/her spouse’s money to invest in their name or vice versa.
Mutual Funds For Child’s Education With SIP Investment
| Fund name | 1 year | 5 year |
|---|---|---|
| SBI Magnum Children’s Benefit Fund | New fund | New fund |
| UTI CCF- Investment Plan | 59.04% | 14.67% |
| HDFC Childrens Gift Investment Plan | 48.06% | 16.02% |
| Axis Childrens Gift Fund – No Lock-in | 37.82% | 14.54% |
Can I transfer a mutual fund to my son?
Units of a mutual fund cannot be transferred from one holder to another, nor can they be gifted by one person to another. Mutual funds are also not allowed to accept ‘third-party’ payments—meaning, you cannot use money from your wife’s bank account to make investments in your name.
What kind of fund is a children gift fund?
Children’s Gift funds are dedicated mutual fund schemes which are positioned as Child plans to meet children’s future financial needs like education, marriage expenses etc.,. These can be categorized as normal ‘ Balanced Mutual Funds ’ or ‘Hybrid Funds’.
Can you invest in HDFC children gift fund?
Though child schemes like HDFC Children’s Gift fund (Investment plan) have outperformed many other balanced or hybrid equity oriented funds, investing in them is optional. You can ignore investing in New Fund Offers like Axis’s recently launched Children’s Gift Fund.
How old do you have to be to invest in child gift fund?
Lock-in Period – Most of the child funds offer optional lock-in facility. Investments will be locked-in till child attains 18 years of age. Who can invest? – Investments have to be made in the name of your minor kid only. Generally Parent / Guardian / Grandparents / relatives can invest in child gift funds in the name of minor child.
How to give investments as a gift-money under 30?
Summary. Giving investments as gifts are a great way to ensure that someone gets a valuable gift that could increase in value as time passes. Look into your options and choose the investment type that is ideal for you to give. Also, make sure that it is ideal for the recipient to get and benefit from.
