As an investor if you are not satisfied with the brokerage's services and want to switch, you might think you have to sell all mutual funds held by them and then when you get a new broker, buy it again. 

This is quite unnecessary as there are ways to transfer one's mutual funds from one brokerage to another. One demat account to another. It is available even if mutual funds are held by CDSL or NSDL. Let's check out the different ways to transfer your mutual funds from your brokerage and from your demat accounts.

How To Transfer If Accounts Are Within CDSL

Suppose you want to transfer mutual funds from a brokerage to another and both brokerages store your shares within CDSL. For that, the investor needs to register themselves on CDSL Easiest. After logging in the page, investors should add the account to which they are sending the mutual funds as a Trusted Account.

Then enter all the necessary details asked such as Account ISINs, Beneficiary Owner ID (BOID) of the brokerage to which your mutual funds need to be transferred, and quantity of mutual funds to be transferred.

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How To Transfer Units if Accounts Are Within NSDL

Similar to the Easiest Facility, In NSDL there is a facility called Speed-e. So investors need to register with Speed-e to transfer the shares. After that, login to the portal and select the mutual funds that need to be transferred and select the account to which the mutual funds need to be transferred.

After this, verify the transfer request using the required passwords.

How To Transfer Funds Manually

Both of the above methods are done online. If an investor wants to transfer the shares offline then the procedure is different. For this the investor needs to get a Delivery Instruction Slip (DIS) from the old broker.

The investor needs to fill the number of units that they need to transfer and the demat account number of the new broker. Then submit the DIS to the old broker and they will process the transaction. This mode can be used to transfer units within same depositories or inter-depositories like CDSL to NSDL or vice versa.

Is There Any Additional Charges or Taxes

There are charges for transferring mutual funds from demat accounts and investors should check these up with their brokerages. There are no taxes if you transfer the units.

However if you sell the units during your transfer, then you will attract charges depending on the time frame of your investments.

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