I intend to transfer my mutual fund units (held as sole holder) to my mother, again to be held by her as sole holder. While exploring the possibility of doing so, I have gone through a large number of websites, forums etc ( including AMC offices), all of which state that transfer of mutual fund units from one holder to another is NOT permitted, except in the case of death of holder when units are allowed to be transferred/ transmitted to the nominee. Howver, Association of Mutual funds of India i.e. AMFI has clearly stated under Investor Services FAQ on its website as follows: QUOTE The person desirous of gifting the units may either bequeath the units to the person whom she/he wishes to gift through a Will or transfer the units through De-mat mode via an off-market transaction in the transferee’s De-mat account. For the latter mode, the units must be held in Dmat mode only. If the units are held in physical mode, then the same will first need to be dematerialized and then transferred through off-market mode as stated above. UNQUOTE In view of above, it seems obvious that just like shares & stocks can be transferred/ gifted by one holder to oyher through offmarket transaction, similarly mutual fund units can also be transferred if held in demat mode. I request clarity on feasibility on doing so as except AMFI, no other source suggests so.