transfer of folios from other demat to fundsindia

I wanted to shift my online mutual fund SIPs from Motilal Oswal demat account to FundsIndia before closing the demat account as they charge annual demat maintenance fee of Rs, 449 every April. I wrote to FundsIndia and got the following reply:

“Dear Sir,

Greetings from Fundsindia!

This is to inform you, Demat account is not required for MF investments here,

Hence, upon your account activation you can transfer your existing funds to us

The documents which you need to submit is , FI application form, Pan Card copy, cancelled cheque leaf with you name pre-printed.

Once you complete the registration,by using our Easy Transfer option the existing offline investments can be transferred to our platform to have a consolidated view and online access over your investment.

Please follow the below given instructions to generate the Easy Transfer request

Login to your account -> Click on Mutual Fund -> Easy Transfer -> Transfer folios -> Continue -> Select the AMC -> Search -> Select the Scheme -> Enter the folio number

Based upon the above steps Easy Transfer letters will be generated, the same needs to be signed and send it to our mailing address along with your FundsIndia application forms. On receipt of the documents we will do the needful.

Please note that these outside folios must not have an active SIP running and should be offline (not through another online channel) folios.”

Does this mean that my folios cannot be transferred? In that case, what is the solution? Must I redeem them (I opened them only 20 days back)? After transferring or redeeming the folios, there will be nothing left in my demat account. How do I get it closed?

Thanks

asked Oct 22 '14 at 01:31 by Kalkunte Srimathi 1111


Unless you are holding mutual Fund Units in dematerialised form, demat account has no relation with mutual funds.

Most of the online trading platforms (like Motilal oswal) have option of buying mutual funds units online in their trading website. But its not related to your demat account. This investment is kept under folio number by mutual fund company (AMC). If you know folio numbers, you won't need anything else.

Even if you close your demat and online trading account with motilal oswal, your folio with AMC would remain as it is and you can choose to withdraw anytime by sending a redemption request to AMC, mentioning your folio number.

There is nothing called online mutual fund SIPs shifting. If you are running SIPs from motilal oswal, it would stop as soon as you close your account with them. You then would need to restart this investment with fundsIndia or on AMC website directly. If you use same folio number in new application, new units would appears under same folio, else new folio number would be generated.

Think folio like bank account where you have invested your money. This account is owned by AMC (mutual fund companies) and not by trading company (like motilal oswal or fundsindia). Trading/online investment companies are just an intermediary providing you an interface to deposit amount into folio. It does not matter which intermediary you choose, actual investment would happen at AMC side.

There is absolutely no compulsion for you to inform fundsindia about old investments. If you inform them, at best would be having an option to track your old investments (done on motilal side) and place redemption requests online.

answered Oct 22 '14 at 13:52 by Pankaj Batra 5.2k320

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Asked: Oct 22 '14 at 01:31

Seen: 5,721 times

Last updated: Oct 22 '14 at 13:52