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Transfer your MF units to another broker without redeeming

If you're migrating to an online portal, the process can be very simple

Your existing broker may decide to shut shop and you will be forced to change your mutual fund (MF) agent, try an organized adviser or broker platform for future transactions. At such times, what happens to your existing MF investments? When you decide to change your adviser or broker, you can shift your existing MF investments to your new broker without redeeming them. Here is how you can do it.

Transfer of mutual funds

You can transfer your existing MF holdings from the present broker to the new broker, or if you were investing without a broker then have the new broker’s Association of Mutual Funds in India registration number added to your existing investments. Essentially, a form with the details and a signed authorization letter needs to be sent to the asset manager or the MF requesting such a transfer to be affected.

Online portals have simple solutions

If you are migrating to an online portal, the process can be very simple and it can be initiated online. Most portals offer a transfer process wherein you simply have to fill in details of your existing MF investments in a set format, take a print, sign it and submit it. They will then initiate and follow through the transfer of units.

Earlier, the process was cumbersome as investors needed to give a no-objection certificate and the transfer couldn’t be made directly from one online portal to another.

The process can be done both online and offline, however online process is smoother. Portals such as FundsIndia.com and ICICIdirect.com offer a facility wherein the transfer is taken care of by them after they receive the details of folios and the authorization for transfer. Moreover, you can also link your previous transactions on the same folio. While in case of ICICIdirect.com the transaction history is gathered by them from the registrar and transfer (R&T) agent, FundsIndia.com offers a facility wherein you can upload an Excel sheet with details and that gets synced with your transferred folio.

The form to be filled is available on their websites, you will have to take a print and submit a physical copy. The funds transfer itself can take two-three weeks. The process will take care of various aspects such as bank account linkages, nominee information, joint holder information and so on.

Things to keep in mind

If you transfer funds to an online portal, typically there won’t be a need to attach account statements as you will already have filled in folio details. However, it is prudent to attach a copy so that any discrepancy can be spotted and corrected before the letter is sent to the R&T agent and subsequently to the asset manager. Such transfer of MFs doesn’t cost you or your distributor.

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