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How you can gift stocks, mutual funds this festive season
Mint 1 hr ago·19 Oct 2026, 6:00 am
This festive season, gifting stocks and mutual funds has become a popular alternative to traditional presents. It allows you to transfer financial assets directly to a loved one's demat account, which can be a meaningful way to share wealth or help someone start their investment journey. The process involves selecting the asset, initiating a request through your broker, and ensuring the recipient has a demat account to receive the shares.
For investors, this gifting option offers a tax-efficient way to transfer wealth. While there are no tax implications for the giver, the recipient may have to pay capital gains tax if the asset has been held for a short period. The tax treatment depends on the relationship between the giver and the recipient, as well as the holding period of the asset. Always check the specific rules with your financial advisor before gifting.
Moving forward, investors should verify the recipient's demat account details and understand the tax liabilities involved. It is also wise to consider the long-term benefits of gifting assets, as it can help the recipient build a diversified portfolio. Keep an eye on any changes in tax regulations that might affect the gifting process.
Key takeaways
- Category: Stocks.
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