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Category: Finance

  • SEBI’s New Nomination Rules for Demat & Mutual Funds 2025

    SEBI’s New Nomination Rules for Demat & Mutual Funds 2025


    New Nomination Rules for Demat & Mutual Funds by SEBI allow up to 10 nominees from Sept 2025. Know key changes, forms, deadlines, and investor guidelines.

    Investing is not just about growing wealth; it’s also about ensuring it passes smoothly to your loved ones after your lifetime. That’s where nomination comes in.

    To simplify and safeguard the nomination process, SEBI has issued a new circular (dated February 16, 2025), with additional operational guidelines shared by KFintech. These new rules are crucial for all mutual fund and demat account holders, and certain changes will take effect from June 1, 2025, and September 1, 2025.

    Let’s break this down in simple language with real-life examples.

    SEBI’s New Nomination Rules for Demat & Mutual Funds 2025

    New Nomination Rules Demat Mutual Funds

    What Is Nomination and Why Is It Important?

    A nomination is a facility that allows you (the investor) to name someone who can claim your investments after your death. Without a nomination, your family may have to go through time-consuming legal procedures.

    Example:
    Mr. Ramesh, a salaried professional, invested in mutual funds but didn’t nominate anyone. When he passed away unexpectedly, his wife struggled for months to get access to the funds. If Ramesh had nominated her, the process would’ve been much smoother.

    What SEBI’s February 2025 Circular Says

    No More Freeze for Not Nominating

    Earlier, investors had a deadline to either nominate someone or opt-out, failing which their accounts could be frozen. That’s now gone. You can continue investing without fear of your account being frozen.

    However, SEBI still advises you to nominate or explicitly opt out for your family’s protection.

    What’s Changing from June 1 and September 1, 2025?

    KFintech has issued key updates to the nomination process, especially for mutual fund folios. Here’s what’s new:

    1. New Nomination Form Format – Effective June 1, 2025

    Starting June 1, 2025, a new format of the nomination form must be used. If you’re submitting your nomination on or after June 1, make sure to use the updated form. The opt-out form remains the same. No changes there.

    2. Number of Nominees You Can Add

    Period Max Nominees Allowed
    Until August 31, 2025 Up to 3 nominees
    From September 1, 2025 Up to 10 nominees

    What this means:
    If you’ve been restricted to adding just 3 nominees, you’ll be happy to know that from September 1, you can nominate up to 10 individuals, giving you more flexibility to distribute your investments.

    3. Mandatory Information for Each Nominee

    To avoid processing delays or rejections (called NIGO – Not in Good Order), the following details are mandatory for each nominee:

    • Full Name
    • Relationship with the investor
    • Percentage of share
    • Address
    • Email ID
    • Mobile number
    • Any one of the following identity details:
      • PAN
      • Driving License Number
      • Last 4 digits of Aadhaar
      • Passport Number

    If any of this is missing, your nomination will be rejected.

    4. Date of Birth for Minor Nominees

    If you’re nominating a minor, you must mention the Date of Birth (DOB) of the nominee. However, naming a guardian is optional, though it’s recommended for better clarity.

    Example:
    Mrs. Seema nominates her 10-year-old son as one of the nominees. She must mention his date of birth, but she may choose whether or not to mention her brother as the guardian.

    5. Witnesses for Thumb Impressions

    If you sign the nomination form using a thumb impression (instead of a signature), you must include the:

    • Name, address, and signatures of two witnesses

    This is done to ensure the legitimacy of the nomination.

    6. Who Can Operate Your Account If You’re Incapacitated?

    You can authorize any one of your registered nominees (except a minor) to operate your folio or demat account in case you become physically or mentally incapacitated.

    You can give this mandate at any time, and it’s not restricted to just when you open your account.

    This is a great new feature that helps in unfortunate medical conditions.

    7. Mode of Signing the Nomination Form – Based on Holding Type

    Mode of Holding Who Can Sign the Form
    Single / First Holder Only first holder must sign
    Joint Holding All holders must sign
    Either or Survivor / Anyone or Survivor Any one holder can sign

    Ensure your signature matches with your records, or else it may be rejected.

    8. What Happens After the Investor’s Death?

    If the investor passes away:

    • The nominees can either:
      • Continue as joint holders among themselves, OR
      • Open separate single folios/accounts in their own name.
    • If some nominees don’t claim their share, the unclaimed portion stays with:
      • AMC in case of mutual funds
      • Depository in case of demat accounts

    9. No Limit on Nomination Updates

    There’s no restriction on how many times you can add/change/remove nominees. You can update nominations as often as you want, and every time you do, the AMC or DP will give you an acknowledgment.

    Real-Life Example to Understand Better

    Case 1:
    Mr. Arvind holds a mutual fund folio in his name and wants to nominate his wife and two children equally. He submits the nomination in July 2025 using the new format, filling all mandatory details, including Aadhaar numbers.

    Outcome:
    Nomination accepted and acknowledged. Upon his death, the fund house can quickly release the funds to the three nominees.

    Case 2:
    Ms. Rekha submits a nomination form in September 2025 with 8 nominees, but misses entering the mobile number of two nominees.

    Outcome:
    The nomination is marked as NIGO and rejected until full details are provided.

    Why You Should Act Now

    • Avoid Legal Complications: Without nomination, your family may need to get legal heir certificates or go to court.
    • Peace of Mind: You know your investments are protected and will go to the right person.
    • Flexibility: You can nominate, update, or delete nominees anytime.

    Summary Table

    Feature Details
    New Nomination Format From June 1, 2025
    Max Nominees Allowed 3 (till Aug 31), 10 (from Sept 1)
    Mandatory Nominee Info Name, % share, contact, identity number
    Minor Nominee DOB mandatory, guardian optional
    Incapacitation Mandate Can authorize any major nominee
    Signing Rules Based on folio holding (Single, Joint, Either)
    Witnesses Needed for thumb impressions
    Update Nomination Unlimited times, with acknowledgment

    For Unbiased Advice Subscribe To Our Fixed Fee Only Financial Planning Service

  • Advice for Financial Advisors

    Advice for Financial Advisors


    Advice for Financial Advisors

    Here’s a question I was recently asked during a podcast.

    What would you like to tell the financial industry about how, specifically, they can better serve women?

    Oh boy. So much to tell. So little space.

    But I’d start with this:

    Women are NOT Men!

    Obvious, right? But clearly, the financial industry hasn’t gotten that memo.

    I’m a big fan of financial professionals. I’ve had the same advisor for many years (after going through nine others that didn’t get the memo either). I even wrote a booklet; Finding a Financial Advisor You Can Trust.

    Sadly, the bulk of advisors (I’m including both sexes here) still live in the dark ages when it comes to female clients.

    Here are my suggestion for how the financial industry can shape up and better serve women. I call it:

    What Women Wish You Knew Before They Walk into Your Office—Part I

    1. Women are all about relationships.

    Men are transaction oriented. Men communicate to obtain info, establish status, and show independence.

    Women are ‘other’ oriented. Women communicate to create relationships and make connections. So when dealing with women, think in terms of ‘connecting with’ rather than ‘selling to.’

    2. Inspire rather than frighten.

    The industry seems to think the best way to motivate women is with scary statistics and worst-case scenarios. But fear produces paralysis in most women.

    If you want to motivate a woman, speak to what inspires her, NOT what scares her.

    While men define success as being in control, women define success as how well they can help others (it’s that relationship thing!). So, instead of filling her with fear, show her how informed investing allows her to help people she loves and causes she’s passionate about.

    More pointers coming in Part II. Meanwhile, feel free to send this list to any advisor you know. You’ll be doing them a big favor.

    As a woman, what do you want in a financial advisor? Tell me in the comments below.

  • Major S&P 500 Index Funds Compared

    Major S&P 500 Index Funds Compared


    SPY vs. VOO vs. IVV: a faceoff between three large, popular index funds, all tracking the S&P 500. But what’s the difference if they all track the same index? And how can you decide which is best for you?

    Let’s start with the basics.

    SPY vs VOO vs IVV: By the Numbers

    Index Funds - SPY vs VOO vs IVV
    SPY VOO IVV
    Full Name SPDR S&P 500 ETF Trust Vanguard S&P 500 ETF iShares Core S&P 500 ETF
    Index Tracked S&P 500 Index S&P 500 Index S&P 500 Index
    Assets Under Management* $403.3 billion $339.7 billion $352.1 billion
    Average Daily Volume (shares) 10,989,786 (30-day average) 4,089,646 (50 day average) 4,627,769 (30-day average)
    Number of Holdings 503 507 507
    Expense Ratio 0.0945% 0.03% 0.03%
    Dividend Yield* 1.61% 1.56% 1.58%
    Issuer State Street Global Advisors SPDR Vanguard  iShares / Blackrock

    * As of October. 2023

    Five-Year Performance

    SPY vs VOO vs IVV: Overview

    All three follow the same S&P 500 index, which is composed of 500 of the largest publicly traded companies in the US. That means the three funds will be holding essentially the same stocks in the same proportions. The only differences are in the details.

    The S&P 500 index and the ETFs that track them are market cap weighted. That means that they give larger companies a heavier weight.

    • SPY is the largest S&P 500 index, slightly ahead of the others in total assets under management and daily trading volume compared to the other two combined. It also has the largest expense ratio, 3x higher than VOO and IVV.
    • VOO is by a small margin the S&P 500 ETF with the smallest amount of assets under management and the smallest trading volume.
    • IVV Is very similar to VOO but slightly larger in assets and trading volume.

    All three ETFs have an almost identical exposure as they follow the same index. The only difference is that VOO and IVV contain a few more stocks, as they are authorized to only partially follow the S&P 500 composition while trying to replicate the index, hence the slightly higher number of stocks held.

    📈 Learn more: Unlock the basics of building wealth with our step-by-step investing guide for beginners.

    SPY vs VOO vs IVV: The Differences

    Because they are so similar, it is easy to get confused about which S&P 500 ETF to choose.

    The first choice to make is between SPY and VOO/IVV. This is because SPY has a much higher expense ratio, more than 3 times higher. So why is SPY the largest of the three if it costs more to own it?

    This is because the expense ratio only tells part of the story about an ETF’s costs. The expense ratio defines the costs you will pay when you own the ETF. However, the spread (the difference between buying and selling price) also affects the actual cost of owning shares in an ETF.

    SPY has the most liquidity and the lowest spread, making it the favorite S&P 500 ETF for the largest financial institutions.

    If you want to buy and hold, you want the lowest expense ratio possible and will prefer VOO or IVV. But if you intend to trade in and out of this position often enough, you’ll ultimately pay lower fees with SPY.

    The choice between VOO and IVV is more difficult. Both have the same expense ratio, and the dividend yield only differs by a microscopic 0.02%.

    One factor could be a preference for one issuer over the other. Both Vanguard and Blackrock are large and well-respected institutions.

    While almost at the same price in 2020, VOO has somewhat lagged behind IVV since, trading at a lower price. This is due to small differences in how the ETF is managed and when it was created.

    However, taking a long-term view (20+ years), it seems this difference is not getting greater over time. So it is not very likely to affect the performance of your portfolio in actual practice.

    Which Is Best for You?

    The first thing to decide is why you are interested in buying an S&P 500 ETF.

    📈 If you plan to trade the ETF regularly, SPY is probably the best for you because of its higher liquidity and lower trading costs, even with a higher expense ratio.

    📈 If this is for a diversified buy-and-hold strategy, VOO or IVV are a better choice, due to their lower expense ratios.

    There’s very little difference between IVV and VOO. But if you worry about the slight but persistent discount of VOO compared to the other 2 large S&P 500 indexes, you might prefer IVV. A preference for Vanguard vs Blackrock could also decide for one against the other.

    No matter which you choose, any of these ETFs will give you diversified exposure to the top 500 publicly listed companies in the US. If you intend to hold for many years, lower fees might make a real difference, especially if you hold the ETF in a retirement account.

    If you want to diversify your S&P 500 ETF with other ETFs, you’ll have plenty of options. We’ve already looked at SPY vs QQQ, an SPX fund vs top NASDAQ 100 fund, and VTI vs VOO, a major SPX fund against a fund tracking the CRSP U.S. Total Market Index. Any of these funds will provide broad, inexpensive exposure to the US markets.

  • ATMs and Branches Nearby – GrowthRapidly

    ATMs and Branches Nearby – GrowthRapidly


    ATMs and Branches Nearby – GrowthRapidly


    February 10, 2023
    Posted By: growth-rapidly
    Tag:
    Banking

    PNC Bank Near Me

    Where to find the closest PNC Bank near me? If you are a PNC bank customer, that is a question you might find yourself asking. If that’s the case, then below you will find some of the ways to locate locations of branches and ATMs of PNC Bank nearby.

    Need help with your money? Find a financial advisor near you with SmartAsset’s free matching tool.

    PNC Bank ATM Near Me

    To find the closest branches with ATMs at PNC Bank, go to their website at https://www.pnc.com/en/personal-banking.html. Then click on “Locations” at the top (right). There, you will find a search bar, as shown below, where you can enter your city, state or zip code to find any PNC bank ATMs around you.

    PNC Bank Near Me

    PNC Bank Branch Near Me

    To find branches of PNC Bank location in your area, you can perform the same search as detailed above, by using the PNC bank locator at the bank’s website. You can also go to the App store as well as Google Play on your smartphone or tablet, download it to your phone and search for all PNC locations, including branches, ATMs, and Partner ATMs. Also, note that Partner ATMs are not owned by PNC, and therefore cash withdrawal may be limited.

    So, to find a PNC banking location that suits your needs, the best way to go by doing it is to use the PNC locator at the bank’s website. For example, if you type in “Chicago” as shown below, the tool will give you several locations at PNC branches and ATMs closest to you. Alternatively, you can use your complete address, state or zip code to perform the search.

    PNC Bank Near Me

    As you can see in the picture above, when you type in your city, for example “Chicago”, the tool will search for all PNC bank locations including branches, ATMs, Partner ATMs. But the tools give you options on what you are looking for specifically. For example, if you’re only looking for PNC Bank “ATMs,” you can then uncheck “Branches” and “Partner ATMs.” If you do that, then the tool will only search all PNC Bank ATMs near you.

    Where is the closest PNC Bank ATM near me?

    As you can see in the picture above, when you checked only ATMs in Chicago, the results returns 39 PNC Bank ATMs. You can scroll down the results and find the PNC Bank ATM closest to you.

    Viewing the Details of the Closest PNC Bank Near Me

    Another interesting feature about the PNC locator is that after your search results, you can click on “View Branch Details” or “View ATM details” at the bottom of each addresses to obtain more information. For example, if you click on “View Branch Details,” you can get information on not only the address, but also you will get the driving directions. You will be able to see schedule an appointment with a banker by clicking on “Schedule an Appointment.” On the Branch Details, you will also see PNC bank’s hours of operations for that specific branch. You will also see the types of services that PNC bank branch offers including: ATM, cashier’s check, wire transfers, loans, etc.

    PNC branch, PNC bank locations near me
    PNC branch near me, PNC atm near me, PNC bank hours near me

    Filtering the type of services offered by the closest PNC Bank Near Me?

    The PNC bank locator has a “Filter” option as well to help you further search for the types of services a specific branch or ATM near you are offering. For example, you can search by the number of miles the branch or ATM is located. You can search for the type of services they offer. For example, whether that specific PNC branch offers instant debit card, drive through, handicapped access, safe deposit box, WiFi, Sunday hours, Service in Spanish, etc.

    About PNC Bank

    PNC bank is one of the largest and popular banks in the United States. In fact, it is the sixth largest bank in the United States. It provides all financial services including but not limited to: checking accounts, credit cards, savings accounts, mortgage loans, auto loans, small business loans, etc. PNC Bank has over 2,300 branch locations across United States and there over 18,000 PNC and Partner ATMs available for your banking needs. You can find the bank hours of operation below.

    Customer service

    To contact PNC Bank’s customer service department, call 1-888-762-2265. Representatives are available: Monday – Friday 7am – 10 pm ET; Saturday – Sunday: 8:am – 5 pm.

    Hours of operation

    PNC Bank’s general hours are from 9 am to 5 pm, Monday through Friday. They are closed on Saturdays and Sundays.

    Other Bank Branches & ATMs Nearby

    20 Questions to Know If You’re Ready for Retirement

    Finding the right financial advisor that fits your needs doesn’t have to be difficult. SmartAsset’s free tool matches you with fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is leally bound to act in your best interests. If you’re ready to be matched with local advisors that will help you achieve your financial goals, get started now.

  • What is Stan Store? – Good Financial Cents®

    What is Stan Store? – Good Financial Cents®


    Initially, when my wife introduced me to Stan Store, I wasn’t impressed.

    It seemed illogical to pay $30 a month for software that just offered a basic sales page, especially without any integrated email service provider.

    This was a stark contrast to my experience with platforms like ConvertKit, where I started with a free account until my subscriber count grew large enough where I had to pay.

    screenshot of Stan Store home page

    As I spent more time with Stan Store, my perspective began to shift. I realized that for someone completely new to online marketing, who might be overwhelmed by the complexities of building and creating a landing or sales page, Stan Store could actually make a lot of sense.

    It’s tailored for beginners, offering them a straightforward entry point into the world of digital marketing.

    Who is Stan Store For?

    So, who’s going to love Stan Store? Pretty much anyone aiming to make a buck online through digital products or services. If you’re like me, trying to turn those ‘link in bio’ clicks into actual sales, then Stan Store is your go-to.

    Let me break it down for you. Stan Store is a hit with a wide range of creators and businesses, but from my experience, it’s a total game-changer for:

    • Content Creators, Influencers, Micro-influencers, and UGC Creators
    • Instagrammers, TikTokers, YouTubers, X’rs
    • Online Coaches, Mentors, and Teachers
    • Digital Product Creators (Etsy, you’ve got competition)
    • Social Media Managers and Content Managers
    • Designers, Freelancers, and Small Digital Businesses

    And hey, even if you’re in the business of selling physical goods, Stan Store can be a killer tool for growing your email list or hosting online events.

    Just a heads up though – selling physical products directly through Stan Store isn’t on the table just yet.

    How Does Stan Store Work?

    Picture this: I’m on TikTok or Instagram Stories, chatting about my latest digital product – let’s say it’s an eBook or a PDF.

    In the past, I’d direct my followers to the ‘link in my bio’, which would then send them off to another site, like my website. There, they’d have to play detective to find the product I was talking about, or sit through endless page loads.

    But with Stan Store, things get a whole lot smoother. The ‘link in my bio’ is now the store itself. Followers can hit that link, buy what they want right there and then, without being shunted off to a different site.

    The best part? They can hop right back to Instagram or TikTok without feeling like they ever left. It’s all about keeping it simple and seamless – and that’s what Stan Store nails perfectly.

    Here’s a screenshot of my wife’s personal Stan Store:

    screenshot of my wife's personal Stan Store account.

    We’re still not a big fan of their email signup process so for now our opt-in page (squeeze page) is hosted on Kajabi.

    But my wife is selling our Digital Product Quickstart Guide on Stan Store. Here’s how the sales page looks:

    screenshot of a sales page built in our Stan Store personal account

    Behind the scenes of our sales page is a payment processor and the ability to deliver the digital product with ease. That’s what makes Stan Store so attractive. You can literally start selling your very own digital product in a matter of minutes.

    Why Stan Store Stands Out

    What truly sets Stan Store apart is its efficiency – you can begin selling your own digital products in just a matter of minutes.

    Stan Store Features Overview

    Stan Store is packed with features designed to make the life of a digital creator easier and more profitable. Whether you’re a coach, influencer, or digital product creator, here’s what Stan Store brings to the table:

    • Mobile & Desktop Optimized Store: Your store looks great and works seamlessly on any device, ensuring a smooth shopping experience for your audience.
    • Calendar Invites & Bookings Product: Easily manage appointments and bookings directly through your store.
    • Analytics: Get insights into your store’s performance to make data-driven decisions.
    • Unlimited Course Products: Offer as many courses as you like, with no restrictions.
    • 1-Tap Checkout: A streamlined checkout process that makes purchasing a breeze for your customers.
    • Recurring Subscription Products: Ideal for memberships and ongoing services, this feature allows for regular income.
    • Audience/Newsletter Builder: Grow your audience and keep them engaged with integrated newsletter tools.

    Stan Store Plans: Creator vs. Creator Pro

    Creator Plan

    The Creator plan, priced at $29 per month (or $300 per year with a 20% discount), is an excellent starting point for anyone looking to jumpstart their online business. It includes all the essential tools you need:

    • Mobile & Desktop Optimized Store
    • Calendar Invites & Bookings Product
    • Analytics
    • Unlimited Course Products
    • 1-Tap Checkout
    • Recurring Subscription Products
    • Audience/Newsletter Builder

    This plan is perfect for creators who are just beginning to monetize their online presence and need a comprehensive, yet straightforward set of tools to get started.

    Creator Pro Plan

    For those ready to take their business to the next level, the Creator Pro plan is available at $99 per month (or $948 per year with a 20% discount). It includes everything in the Creator plan, plus advanced features for optimizing conversions and offering more to your customers:

    • Advanced Pricing & Payment Plans
    • Discount Codes
    • Limit Quantity
    • Payment Plans
    • Order Bumps & Upsells
    • Funnel Builder
    • Affiliate Share Feature
    • Email Marketing

    The Creator Pro plan is tailored for creators who are looking to expand their offerings, optimize their sales process, and engage more deeply with their audience.

    Benefits of Using Stan Store

    Convenience and Accessibility

    The convenience and accessibility of Stan Store are what eventually changed my initial skepticism. The platform allows anyone, regardless of their technical skill, to quickly set up a landing or sales page.

    This ease of use is a crucial factor for many users, especially those who lack the time or technical expertise to navigate more complex systems.

    screenshot of our personal stan store account logged in

    Competitive Pricing and Deals

    The initial pricing, though seemingly high, is justified by the platform’s simplicity and effectiveness, particularly for its target audience – the absolute beginner in online marketing. The recent addition of an email service provider at a higher tier adds more value, making it a more comprehensive tool.

    Drawbacks of Stan Store

    Limitations in Product Availability

    One of the criticisms I had of Stan Store was its limited range of features. While its simplicity is its strength, it also means that users looking for more advanced features might find Stan Store lacking. This limitation can be a significant drawback for users as their businesses and marketing skills evolve.

    Stan Store Alternatives

    In the journey of online entrepreneurship, it’s crucial to explore various platforms to see what aligns best with your business needs. While Stan Store has been a solid choice for me, I’ve also had experiences with other platforms worth mentioning:

    • Shopify: Shopify is a robust platform for creating online stores. It’s feature-rich and offers a lot of flexibility for those looking to build a detailed and extensive online shop.
    • WooCommerce: Ideal for WordPress users, WooCommerce seamlessly integrates with your existing site, transforming it into a fully functional e-commerce platform. It’s versatile but can be a bit complex, especially for beginners.
    • Etsy: Etsy is the go-to marketplace for unique, handmade, or vintage items. It’s less about building your own store and more about joining a vibrant, existing marketplace.
    • Teachable and Thinkific: Both are excellent for creating and selling online courses. They offer a range of tools tailored for educators and coaches, focusing on course creation and student engagement.
    • Gumroad: Simple and straightforward, Gumroad is perfect for independent creators selling digital products like books, music, or art directly to their audience.
    • Kajabi: Kajabi is an all-in-one platform offering tools for online courses, marketing, and website building. It’s ideal for those offering educational content and looking for a comprehensive solution.

    Comparison Table: Stan Store vs. Alternatives

    Feature/Platform Stan Store Shopify WooCommerce Etsy Teachable/Thinkific Gumroad Kajabi
    Customization Moderate High High Low Moderate Low High
    Ease of Use High Moderate Moderate High High High Moderate
    Target Audience Creators General Retail WordPress Users Artisans Educators Independent Creators Educators/Marketers
    Product Type Digital All Types All Types Handmade/Vintage Courses Digital Products Courses/Marketing
    Pricing Model Subscription Subscription Free (Plugin) Transaction Fees Subscription Transaction Fees Subscription

    This table gives a quick overview of how Stan Store compares with its alternatives in terms of customization, ease of use, target audience, product type, and pricing model. Each platform has its strengths, and the best choice depends on your specific business needs and goals.

    Is Stan Store Worth it?

    After diving deep into Stan Store and comparing it with its alternatives, the big question remains: Is Stan Store worth it? Based on my experience and the insights I’ve gathered, my answer leans towards a yes, especially for a specific audience.

    Stan Store stands out for its sheer simplicity and focus on digital content creators. If you’re just starting out or find yourself overwhelmed by the complexities of more advanced platforms, Stan Store offers a welcoming and straightforward path. The ease of setting up a sales or landing page, combined with the platform’s focus on digital products, makes it an attractive option for creators who want to monetize their content without the hassle.

    The pricing, initially a point of skepticism for me, actually makes sense when you consider the target audience and the features offered. For beginners and those not ready to navigate the complexities of platforms like Shopify or WooCommerce, Stan Store’s $29 monthly fee for the Creator plan is a reasonable investment.

    And for those looking to scale up, the Creator Pro plan, despite its higher price, brings in advanced features that could justify the cost as your business grows. If you’re not sure Stan Store is a good fit, the 14-day free trial might be exactly what you need.

    Bottom Line – Stan Store Honest Review

    In conclusion, while Stan Store might not be the one-size-fits-all solution for every online entrepreneur, it certainly has carved out its niche. It’s a platform that understands and caters to the needs of digital content creators, making it a worthwhile consideration for those in its target demographic.

    As with any tool, it’s about finding the right fit for your specific needs, and for many creators, Stan Store could be just that.

    To try Stan Store for free, click here for a 14-day trial.

  • States That Don’t Tax Retirement Income

    States That Don’t Tax Retirement Income


    If you’re considering relocating to a different state when you retire, you might want to think about how your income will be taxed in the state you plan to move to.

    State income taxes can range as high as 13.3% – unless you live in a state that doesn’t tax retirement income. 😊

    Nine states impose no income tax at all.

    If you are a retiree, you can move to any one of those states without concern for the state income tax liability on your retirement income. However, there are many other states that exempt income from specific retirement sources, like Social Security, pensions, military pensions, and distributions from defined contribution retirement plans.

    Read More:

    Table of Contents
    1. 9 States That Don’t Collect Income Tax
    2. 13 States That Don’t Tax Defined Contribution Plan Distributions
      1. What about Roth IRA distributions?
    3. 15 States That Don’t Tax Pension Income
    4. 32 States That Don’t Tax Military Pensions
    5. 37 States That Don’t Tax Social Security Income (Plus The District of Columbia)
    6. Is it Better to Live in a State that Doesn’t Tax Retirement Benefits?

    9 States That Don’t Collect Income Tax

    Nine states currently have no income tax. Since they don’t tax income, that also means they don’t tax retirement income.

    The nine states with no income tax include:

    • Alaska
    • Florida
    • New Hampshire*
    • Nevada
    • South Dakota
    • Tennessee
    • Texas
    • Washington
    • Wyoming

    * New Hampshire had a 3% income tax levied on interest and dividend income received in 2024. However, this tax has been repealed starting January 1st, 2025.

    13 States That Don’t Tax Defined Contribution Plan Distributions

    As is the case with federal income tax, most states tax distributions from defined contribution plans.

    These include traditional, SEP, and SIMPLE IRAs; 401(k), 403(b), 457, and Thrift Savings Plans (TSPs). However, 13 states don’t impose tax on defined contribution plan distributions. (Source: Bankrate)

    Included are the nine “no income tax” states with no income tax, along with these four additional states that don’t tax defined contribution plan distributions:

    • Illinois
    • Iowa
    • Mississippi
    • Pennsylvania

    What about Roth IRA distributions?

    Generally speaking, states follow the same tax treatment with Roth IRA distributions as the IRS. But since each state has its own tax code, you’ll need to check with your tax preparer or tax software program to determine if (and when) Roth IRA distributions can be taken tax-free.

    * Note that in researching for this article, we could not identify a single authoritative source confirming conclusively that Roth IRA distributions can be taken tax-free in all 50 states and the District of Columbia.

    15 States That Don’t Tax Pension Income

    A total of 15 states don’t tax pension income. In addition to the nine states with no income tax, six additional states impose no income tax on pension income (also known as defined benefit retirement plans). (Source: Kiplinger)

    • Alabama
    • Hawaii
    • Illinois
    • Iowa
    • Mississippi
    • Pennsylvania

    32 States That Don’t Tax Military Pensions

    A total of 32 states don’t tax military pensions. In addition to the nine states with no income tax, the following 23 states don’t tax military pensions. (Source: MyArmyBenefits, The official military benefits website of the U.S. Army, Table of 2021 State Taxes and Military Retired Pay):

    • Alabama
    • Arkansas
    • Arizona
    • Connecticut
    • Hawaii
    • Illinois
    • Iowa
    • Kansas
    • Louisiana
    • Maine
    • Massachusetts
    • Michigan
    • Minnesota
    • Mississippi
    • New Jersey
    • New York
    • North Carolina
    • North Dakota
    • Ohio
    • Pennsylvania
    • Utah
    • West Virginia
    • Wisconsin

    The following 16 states provide partial exemption from state income tax on military pensions:

    • Colorado
    • Delaware
    • Georgia
    • Idaho
    • Indiana
    • Kentucky
    • Maryland
    • Missouri
    • Montana
    • Nebraska
    • New Mexico
    • Oklahoma
    • Oregon
    • Rhode Island
    • South Carolina 
    • Virginia

    Only three jurisdictions provide no exemption for military pensions:

    • California
    • The District of Columbia
    • Vermont

    37 States That Don’t Tax Social Security Income (Plus The District of Columbia)

    A total of 37 states, plus the District of Columbia, exempt Social Security benefits from taxation. That includes the following 28 states and the nine that impose no income tax. (Source: The Tax Foundation):

    • Alabama
    • Arizona
    • Arkansas
    • California
    • Delaware
    • District of Columbia
    • Georgia
    • Hawaii
    • Idaho
    • Illinois
    • Indiana
    • Iowa
    • Kentucky
    • Louisiana
    • Maine
    • Maryland
    • Massachusetts
    • Michigan
    • Mississippi
    • New Jersey
    • New York
    • North Carolina
    • Ohio
    • Oklahoma
    • Oregon
    • Pennsylvania
    • South Carolina
    • Virginia
    • Wisconsin

    The remaining 13 states provide partial tax exemption of Social Security income, either based on age or income level or with some other form of modification:

    • Colorado
    • Connecticut
    • Kansas
    • Minnesota
    • Missouri
    • Montana
    • Nebraska
    • New Mexico
    • North Dakota
    • Rhode Island
    • Utah
    • Vermont
    • West Virginia

    Is it Better to Live in a State that Doesn’t Tax Retirement Benefits?

    All things being equal, retirees are financially better off living in states that don’t tax retirement benefits. But as we all know, all things are seldom equal. So while state income taxes are an important consideration, they shouldn’t be the only deciding factor on where you should live out your golden years.

    You must also consider other types of taxes, such as sales and real estate taxes.

    For example, New Hampshire is one of the states with no income tax, but it has some of the highest property taxes in the country. In that case, the benefit of not paying income tax may be offset by higher property taxes.

    Housing prices are another consideration. The state of Washington has no income tax, but the median price of a house is $552,000. The cost of purchasing a home in Washington state could easily cancel out the benefit of tax-free retirement income.

    Insurance is another factor. Florida has no income tax and is a popular destination for retirees. But, the state also has the highest car insurance premiums in the country, at an average of $2,694 per year, and the highest average homeowner’s insurance premiums, at $10,996 per year.

    All of this is to say that while the income tax impact on retirement is important, it’s just one piece of the puzzle. Living in a state that doesn’t tax retirement income is a major plus, but it can be offset by other costs that are not easily avoided.

  • 2025 2026 HSA Contribution Limits and HDHP Qualification

    2025 2026 HSA Contribution Limits and HDHP Qualification


    The contribution limits for various tax-advantaged accounts for the following year are usually announced in October, except for the HSA, which comes out in April or May. The contribution limits are adjusted for inflation each year, subject to rounding rules.

    You can only contribute to an HSA if you’re covered by a High Deductible Health Plan (HDHP) with no other coverage. You can use the money already in the HSA for qualified medical expenses regardless of what insurance you currently have.

    HSA Contribution Limits

    2025 2026
    Individual Coverage $4,300 $4,400
    Family Coverage $8,550 $8,750
    HSA Contribution Limits

    Source: IRS Rev. Proc. 2024-25, Rev. Proc. 2025-19.

    Employer contributions are included in these limits.

    The family coverage numbers are double the individual coverage numbers in some years but it isn’t always the case every year. Because the individual coverage limit and the family coverage limit are both rounded to the nearest $50, the family coverage limit can be slightly more or slightly less than double the individual coverage limit when one number rounds up and the other number rounds down.

    Age 55 Catch-Up Contribution

    As in 401k and IRA contributions, you are allowed to contribute extra if you are above a certain age. If you are age 55 or older by the end of the year (not age 50 as in 401k and IRA contributions), you can contribute an additional $1,000 to your HSA. If you are married, and both of you are age 55, each of you can contribute an additional $1,000 to your respective HSA.

    However, because an HSA is in one individual’s name, just like an IRA — there is no joint HSA even when you have family coverage — only the person age 55 or older can contribute the additional $1,000 in his or her own name. If only the husband is 55 or older and the wife contributes the full family contribution limit to the HSA in her name, the husband has to open a separate account in his name for the additional $1,000. If both husband and wife are age 55 or older, they must have two HSA accounts in separate names if they want to contribute the maximum. There’s no way to hit the combined maximum with only one account.

    The $1,000 additional contribution limit is fixed by law. It’s not adjusted for inflation.

    Two Plans Or Mid-Year Changes

    The limits are more complicated if you are married and the two of you are on different health plans. It’s also more complicated when your health insurance changes mid-year. The insurance change could be due to a job change, marriage or divorce, enrolling in Medicare, the birth of a child, and so on.

    For those situations, please read HSA Contribution Limit For Two Plans Or Mid-Year Changes.

    HDHP Qualification

    The IRS also defines what qualifies as an HDHP. For 2025, an HDHP with individual coverage must have at least $1,650 in annual in-network deductible and no more than $8,300 in annual out-of-pocket expenses. For family coverage, the numbers are a minimum of $3,300 in annual deductible and no more than $16,600 in annual out-of-pocket expenses.

    For 2026, an HDHP with individual coverage must have at least $1,700 in annual deductible and no more than $8,500 in annual out-of-pocket expenses. For family coverage, the numbers are a minimum of $3,400 in annual deductible and no more than $17,000 in annual out-of-pocket expenses.

    Please note the deductible number is a minimum while the out-of-pocket number is a maximum. The maximum out-of-pocket limit only applies to the in-network number. If the in-network out-of-pocket limit of your insurance policy is too high, it doesn’t qualify as an HSA-eligible policy.

    In addition, just having the minimum deductible and the maximum out-of-pocket isn’t sufficient to make a plan qualify as HSA eligible. The plan must also meet other criteria. See Not All High Deductible Plans Are HSA Eligible.

    2025 2026
    Individual Coverage
    minimum deductible $1,650 $1,700
    maximum out-of-pocket $8,300 $8,500
    Family Coverage
    minimum deductible $3,300 $3,400
    maximum out-of-pocket $16,600 $17,000
    HDHP Qualification

    Source: IRS Rev. Proc. 2024-25, Rev. Proc. 2025-19.

    Contribute From Payroll

    If you have a High Deductible Health Plan (HDHP) through your employer, your employer may already set up a linked HSA for you at a selected provider. Your employer may be contributing an amount on your behalf there. You save Social Security and Medicare taxes when you contribute to the HSA through payroll. Your employer may be paying the fees for you on that HSA.

    When you contribute to an HSA outside an employer, you claim the tax deduction on your tax return similar to when you contribute to a Traditional IRA. If you use tax software, be sure to answer the questions on HSA contributions. The tax deduction shows up on Form 8889 line 13 and Schedule 1 line 13.

    Non-Dependent Adult Children

    If your HDHP also covers an adult child who’s not claimed as a dependent on your tax return, each non-dependent adult child covered by the plan can also contribute to a separate HSA in their name at the family coverage level when they don’t have other non-HDHP coverage. This is because they meet the eligibility:

    (a) Covered by an HDHP with no other coverage; and
    (b) The HDHP policy they have covers more than one person.

    Each non-dependent adult child can open a separate HSA on their own with an HSA provider.

    Best HSA Providers

    If you get the HSA-eligible high deductible plan through an employer, your employer usually has a designated HSA provider for contributing via payroll deduction. It’s best to use that one because your contributions via payroll deduction are usually exempt from Social Security and Medicare taxes. If you want better investment options, you can transfer or roll over the HSA money from your employer’s designated provider to a provider of your choice afterward. See How To Rollover an HSA On Your Own and Avoid Trustee Transfer Fee.

    If you are not going through an employer, or if you’d like to contribute on your own, you can also open an HSA with a provider of your choice. For the best HSA providers with low fees and good investment options, see The Best HSA Provider for Investing HSA Money.

    Say No To Management Fees

    If you are paying an advisor a percentage of your assets, you are paying 5-10x too much. Learn how to find an independent advisor, pay for advice, and only the advice.

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  • Green Investment Funds for Sustainable Growth

    Green Investment Funds for Sustainable Growth


    When we think about investing, we usually focus on things like returns, company performance, valuation, past track records, or the reputation of the asset management company. But today, as we witness the growing environmental degradation and climate change, there’s a shift in the mindset of many investors.

    More and more individuals are beginning to care just as much about how a company operates as they do about how much it earns, by assessing how companies treat the environment, their employees, and society in general. 

    That’s why investors are considering investing in green funds, or as they are more commonly known here, ESG funds, as part of their financial planning. These funds are considered a kind of green investment as they focus on companies that act responsibly and follow sustainable business practices.

    What Is a Green Fund?

    When we talk about green funds, we’re talking about mutual funds that invest primarily in shares of companies that practise environmentally sustainable, socially responsible, and ethically governed business models, such as those involved in renewable energy, electric cars, clean tech, waste management, or companies with strong ESG (Environmental, Social, Governance) ratings. 

    The term is not commonly used in India, as here such funds are referred to as ESG funds.When fund managers select the stocks to invest in, they assess how companies handle:

    • The environmental impact of their operations: This includes evaluating factors like their carbon emissions, waste management systems, water conservation, pollution control, and energy efficiency. The higher the company scores in these aspects, the more ‘green’ they are considered. For example, a company manufacturing solar cells and wind turbines would score highly on environmental criteria as they help generate renewable energy. Similarly, a business focusing on electric cars will also be looked at favourably by fund managers.
    • Their social responsibility: Fund managers score companies on the basis of how they treat their employees, support community welfare, and promote education and healthcare. Other factors like gender equality, labour rights, fair wages, and safe working environments are also closely considered.
    • Governance standards: This part involves analysing the qualitative aspects of a company, like its leadership structure, how compliant it is with regulations, its transparency in financial reporting, ethical conduct, and how well it protects its shareholders.

    How Do Green Funds Work?

    Green funds work the same way as any other mutual fund. They are a pooled investment where a professional fund manager invests the corpus in a diversified basket of securities. What sets green funds apart is the way in which this portfolio is selected. Instead of just looking at financial metrics, managers assess companies on the basis of ESG scores. 

    While there is no set standard for ESG scoring, the general idea is to prioritise companies that align with the many ESG parameters. For individuals, investing in these funds also works the same as other mutual funds. You can buy units with a lump sum or through an sip investment plan if you want to take the regular contribution approach.

    Purpose and Objectives of Green Fund

    The main goal of a green fund investment is to deliver strong returns by investing in companies that score well on ESG parameters. Since these equity-oriented funds are actively managed, managers aim to outperform benchmarks like the Nifty 100 ESG Index. These are long-term vehicles which not only offer environmentally-conscious individuals the opportunity to invest in a diversified portfolio but are also well-positioned to benefit from the growing awareness around environmental sustainability and ethical business practices. 

    As more people and companies recognise the importance of environmental protection and honest governance, businesses that align with ESG principles will likely gain a competitive edge.

    Since equity means ownership, the more socially aware investors these days try to prioritise and support companies that align with their values. If you too want to create long-term wealth but wish to do so by investing in ESG-responsible companies, consider consulting with a mutual fund investment planner first. They can help you identify the right green investment that matches your financial goals and values.

    Types of Green Funds

    The main type of green investment funds available in India today are the ESG funds. These funds gained significant popularity during the COVID-19 pandemic, so they are still an emerging category. Other than these, several thematic funds focus on specific sustainability-related sectors, like renewable energy and natural resources. 

    Thematic funds are considered very risky due to their sector concentration. As the name suggests, they focus on a narrow theme, which means their performance is highly dependent on the success of that particular industry. For example, a renewable energy fund can sometimes see peaks but can also face steep declines if the sector underperforms. A financial planner can assess your risk tolerance to help you understand whether or not such funds align with your financial goals and investment horizon.

    Key Components of Green Funds

    Fund managers assess companies based on their ESG scores to ensure they are making a genuine green investment. This ESG assessment forms the core of the fund’s selection process and helps align the portfolio with the values of its socially and environmentally conscious investors. Components include:

    Environmental Responsibility

    • Funds evaluate how companies treat the environment by looking at factors such as:
    • How companies use and conserve water
    • Their efforts to control pollution
    • Waste management practices
    • Company’s impact on climate
    • Carbon emissions
    • Their use of renewable resources
    • Whether the company makes energy-efficient choices

    Social Impact

    • This refers to how a company treats its employees and how responsible they are towards society as a whole. Includes factors like:
    • Gender diversity and equal pay
    • Labour rights
    • Employees welfare
    • Contributions towards public healthcare and education
    • Impact of business on the local communities

    Governance Practices

    Fund managers evaluate the following factors to ensure the company they’re investing in has ethical governance:

    • Board structure and compensation
    • Transparency in disclosing profits and income statements
    • How they treat their shareholders
    • History of corruption in the organisation
    • A company’s political contributions

    ESG Ratings

    Funds assess ESG scores made by independent agencies to ensure the companies they select score well on ESG compliance. As stated previously, there is no clear definition of ESG, so different agencies, like Morningstar, MSCI, and Sustainalytics have different ESG scoring criteria. A qualified investment planner can help you understand how these components work together to form a green portfolio.

    Benefits of Green Funds

    By investing in green funds one can reap many benefits:

    • Diversification and professional management: A green fund invests in an expertly selected basket of stocks to lower risk. Some green funds, like thematic funds revolving around green energy, can be very risky as their diversification is only spread across a handful of industries.
    • Long-term investment: Most green funds are equity-oriented and thus perform better over the long term. Also, ESG companies keep up with sustainability trends, so they are expected to grow as awareness around ESG factors increases. For example, an electric car company can potentially benefit greatly as governments push for cleaner transportation and consumers shift towards eco-friendly vehicles. That’s why a retirement planner might recommend green funds to clients with a long investment horizon.
    • Moral satisfaction: By investing in a green fund, you are investing in companies that align with your personal values. Just knowing that your money is invested in forward-thinking and sustainable companies can bring satisfaction along with returns.
    • SIP option: Like other mutual funds, green funds allow you to make fixed and regular contributions through SIPs. This option offers many advantages like building financial discipline, affordability, convenience and flexibility, and rupee cost averaging.
    • Tax benefits: Equity-oriented funds are more favourably taxed compared to debt-oriented funds. A tax consultant can help you understand the capital gains tax implications of your investments and advise you on how you can keep more of your hard-earned money through personalised strategies.

    Challenges and Barriers to Green Funds

    Now that we’ve discussed the advantages, it’s only fair to understand the challenges green funds face:

    • Limited universe: One of the main challenges is the relatively small pool of companies that meet ESG standards, which limits the number of stocks fund managers can choose from when building a diversified portfolio.
    • Lack of definition: What a green or ESG fund is, is not clearly defined by regulatory bodies. ESG scores also vary across independent agencies which makes it hard for funds to find companies that are ESG-compliant. Some ESG funds also invest heavily in companies that make substantial profits from tobacco, cigarettes, and fossil fuels. 
    • Inadequate historical data: ESG funds are relatively new in India, so the availability of long-term performance data is limited. This lack of information makes it hard for investors to assess consistency and whether these funds are capable of providing better risk-adjusted returns in the future.
    • Higher risk: Since most green funds are equity-oriented and generally concentrated in select sectors like clean energy, banking, or technology, they carry higher risk.
    • Greenwashing: When companies exaggerate or even falsely claim their practices are sustainable and environment-friendly, they are said to be engaging in greenwashing. Some companies use manipulative marketing or selective reporting to come across as more responsible than they actually are, which is a problem for funds and investors alike.

    Creating and Managing a Green Fund

    If you’re looking to make a green fund investment, ESG funds are your best option at the moment, followed by high-risk green energy thematic funds. While the number of such funds is still limited, rising awareness around sustainability can maybe drive both demand and long-term value in the future. 

    Before you invest, consider several factors such as the fund manager’s track record, fund history, the asset management company’s reputation, the fund’s AUM, risk-adjusted returns, alpha, and beta.

    You should also review the fund’s holdings to make sure its investments truly reflect your values and that the fund isn’t investing in companies that are greenwashing. As always, make sure the fund’s philosophy matches your own, and that your investment aligns with your goals and tolerance for risk.

    Conclusion

    ESG and green investment funds are a relatively new category of funds in India. They are designed to combine financial growth with environmentally sustainable and ethical business practices. Every day, more and more investors become conscious of the impact their money can make, so these funds give them a viable route to align their personal values with long-term wealth creation. 

    While these funds face many challenges, increasing regulatory focus and growing awareness around issues such as climate change can help strengthen them in the future. Several factors should be assessed before investing in mutual funds. Get personalized investing advice by giving our experts a call today!



  • Can You Gift Mutual Funds in India? Rules | Taxation

    Can You Gift Mutual Funds in India? Rules | Taxation


    Can you gift mutual funds in India? Discover the legal ways, tax rules, and the best method to gift mutual fund units to your family or friends with ease.

    In Indian families, gifting is often a heartfelt tradition. But today, beyond gold or gadgets, people are also looking to gift financial assets, like mutual funds, to their loved ones. A natural question arises—can mutual funds be gifted in India, and if so, what’s the proper way to do it?

    Let’s walk through the legal, procedural, and tax-related aspects of gifting mutual funds, based on guidelines from AMFI, SEBI, and IT Department rules and regulations.

    Can You Gift Mutual Funds in India?

    Gift Mutual Funds in India

    Yes—but not as freely as you might think. Mutual fund units are not like jewellery or cash, which you can hand over easily. The transfer of mutual fund ownership is regulated, and depends on how the units are held—demat or physical.

    As per SEBI and AMFI, mutual fund units:
    – Can be transferred as a gift only if held in demat form, via off-market transactions.
    – Cannot be transferred if held in non-demat (physical) form—except on death (i.e., transmission).
    – Cannot be transferred just by executing a Gift Deed.

    1. Best Option: Invest Directly in Recipient’s Name
    The simplest way to “gift” mutual funds is by investing directly in the name of your family member.

    Example:
    You want to gift your daughter a mutual fund. Instead of buying it in your name and trying to transfer it later, you:
    – Use her PAN, KYC, and bank details.
    – Invest directly into a mutual fund in her name.

    For minor children, the investment will be made under their name, with a guardian (parent) managing the account until the child turns 18.

    The cleanest approach is to directly invest in your child’s name. However, be aware that once your child turns 18, they gain full control over the investments, as it becomes their money. This means you’ll have no authority over the funds once they reach adulthood. So, it’s important to exercise caution, as their future decisions might not align with your expectations.

    According to the clubbing provisions, if you withdraw the investment before your child turns 18, the gains will be taxed under your income, as the investment is still considered part of your financial assets. In the case of gifting mutual funds to a spouse, if the funds come from your earnings, the income generated from the mutual fund will be taxed under your income, not your spouse’s. This is because the source of the income matters for tax purposes.

    2. Gifting via Demat Transfer (Off-Market)
    If you hold mutual fund units in demat form, and your recipient also has a demat account, you can transfer them via an off-market gift transaction.

    Steps:
    1. Ensure both donor and recipient have demat accounts (CDSL or NSDL).
    2. Submit a Delivery Instruction Slip (DIS) to your Depository Participant.
    3. Specify the recipient’s demat details and indicate it’s a gift.

    This is the only SEBI-approved method for gifting existing units. Here’s a simple example of an off-market transaction:

    Imagine you want to gift some mutual fund units to your brother, who has a demat account. Here’s how an off-market transaction would work:

    1. Step 1: You have mutual fund units in your demat account, and your brother also has a demat account.
    2. Step 2: You fill out a Delivery Instruction Slip (DIS), which is like an instruction to transfer the units from your demat account to your brother’s demat account. You’ll mention the mutual fund units and his demat account details.
    3. Step 3: You submit the DIS to your Depository Participant (DP), which is the financial institution managing your demat account.
    4. Step 4: The transfer happens off-market, meaning it’s a private transfer between two parties and does not happen through the stock exchange.
    5. Step 5: Your brother now owns the mutual fund units in his demat account, and the transfer is complete.

    This is an off-market transaction because the transfer occurs directly between you and your brother, outside of the stock exchange, with the help of a DIS form.

    3. Why a Gift Deed Alone Won’t Work

    A Gift Deed, though legally valid for movable property, does not serve as a tool to transfer mutual fund units. Mutual funds in physical form are non-transferable, and AMCs or RTAs do not accept gift deeds for ownership change.

    You may use a gift deed as a supporting document when doing an off-market transfer via demat, but on its own, it’s not effective.

    4. Use a Will for Post-Death Transfer (Transmission)

    If your intention is to pass on mutual funds after your death, then a Will is the correct instrument.

    Transmission Process:
    – Units are transferred to nominee or legal heir after submission of required documents (death certificate, KYC, Will copy, etc.).
    – If there’s no nomination, transmission is more complex and may require legal heir certificates or probate.

    A nomination ensures quicker access, while a Will provides legal clarity on inheritance.

    Do note that nominees by default will not be considered as asset owners. They act like trustees to transfer the assets to the legal heirs.

    5. Can You Gift via Online Platforms?

    Some fintech platforms like Kuvera or Zerodha Coin allow you to gift mutual funds where:
    – You choose a scheme.
    – Pay from your bank account.
    – The recipient receives a link to accept the gift and complete their KYC.

    Units are then directly allotted to the recipient, just like a fresh purchase.

    Convenient, but not a “transfer”—it’s a new investment on behalf of someone else.

    Income Tax Implications of Gifting Mutual Funds

    Here’s where things become critical—especially if you’re gifting to spouse or minor children.

    1. Gift Tax – Section 56(2)(x)
    – Gifts from relatives (as defined under the Income Tax Act) are fully tax-exempt, regardless of amount.
    – Gifts from non-relatives exceeding Rs.50,000 in a year are taxable in the recipient’s hands as “Income from Other Sources”. Who are considered relatives?
    – Spouse, parents, children, siblings, lineal ascendants/descendants, etc.

    So, if you gift to your spouse or child, there is no gift tax. Refer my earlier post on this “Income Tax on Gift in India – Rules and tips to save tax“.

    2. Capital Gains Tax – Who Pays and When?
    When the recipient sells the mutual fund units later, capital gains tax will apply. The cost and holding period of the donor (you) will be considered for tax calculation.

    Example:
    – You bought a mutual fund in 2020, gifted it to your spouse in 2024.
    – They sell it in 2026.
    – For tax purposes, the investment is considered from 2020, and capital gains will be long-term or short-term accordingly.

    3. Clubbing of Income – Section 64
    This is extremely important and often overlooked.

    If you gift mutual funds to:
    – Your spouse, or
    – Your minor child (not a disabled child),

    Then any income or capital gains generated from that investment is clubbed with your income.

    You gift Rs.1 lakh in mutual funds to your wife. She redeems it later with a gain of Rs.10,000. This Rs.10,000 gain will be taxed in your hands, not hers.

    Exception:
    – Clubbing does not apply if gifted to:
      – Adult children
      – Parents
      – Siblings
      – Disabled minor child
      – Other relatives (as long as not spouse/minor)

    Takeaway: Gifting is tax-free, but income arising from it may come back to you under clubbing provisions. So plan accordingly.

    Summary: Can Mutual Funds Be Gifted?

    Method Allowed? Tax Implications Notes
    Direct Investment in Recipient’s Name Yes May invoke clubbing if spouse/minor Most recommended
    Demat Transfer (Off-Market) Yes Clubbing applies if spouse/minor For existing units in demat
    Gift Deed (Physical Mode) No N/A Not accepted by AMCs
    Will Yes Tax applies after transmission For inheritance only
    Online Platform Gifting Yes Treated as direct investment Easy for beginners

    Final Thoughts

    Mutual fund gifting in India is legally allowed, but comes with conditions:

    • Gift mutual funds through direct investment or demat transfer.
    • Don’t rely on a Gift Deed to change ownership—it won’t work.
    • For legacy planning, always draft a Will and align it with your nominations.
    • Understand clubbing rules before gifting to your spouse or minor children, or you may end up paying tax on their gains.

    As SEBI-registered financial planners, we often advise clients to gift mindfully—not just for tax-saving, but for long-term wealth-building within the family.

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  • The Only Guaranteed Way For Middle Class People To Become Wealthy

    The Only Guaranteed Way For Middle Class People To Become Wealthy


    Rich Habits
    If you find value in these articles, please share them with your inner circle and encourage them to Sign Up for my Rich Habits Daily Tips/Articles. No one succeeds on their own. Thank You!

    In my five-year Rich Habits Study I discovered four ways the self-made millionaires in my study accumulated their wealth:

    1. Saver-Investor Path
    2. Big Company Climber Path
    3. Virtuoso Path
    4. Dreamer-Entrepreneur Path

    The Saver-Investor-Millionaires in my study forged three important habits, which enabled them to accumulate an average of $3,260,000:

    • Habit #1 Frugal Spending – Frugal does not mean being cheap with your money. Frugal means spending your money on the lowest price, highest quality product or service available.
    • Habit #2 Saving 20% or More of Your Income – This requires that you maintain a standard of living that allows you to live off of 80% of your net pay.
    • Habit #3 Bucket System for Savings – Identifying specific savings priorities and devoting a percentage of your savings to each bucket: Wedding, First Home, Emergency Fund, College Savings, Investments, Retirement, etc.

    In my book, Effort-Less Wealth – Smart Money Habits At Every Stage of Your Life, I share the 23 Smart Money Habits of the Saver-Investor millionaires in my study. These habits guarantee financial independence and wealth.

    The Saver-Investors in my study used these smart money habits, which helped them put financial success on autopilot. Because they followed these habits diligently, they were able to automatically build wealth over many years. Over those many years, their investments appreciated, dividend income accrued and interest income on their investments accumulated automatically.

    Individuals who follow these three smart money habits are able to grow their wealth, even when they are asleep – which happened to be a common goal among all of the millionaires in my Rich Habits Study.

    Conversely, those who live beyond their means wind up accumulating debt. The interest on that debt also happens to grow, while they are sleeping.

    Every time they wake up, they are eight hours poorer.

    If you want to build wealth the easiest, most certain way possible, the Saver-Investor Path is the way to go. It doesn’t require any advanced degrees. It doesn’t require that you take enormous risks. And it doesn’t require that you work oppressive work hours, which negatively impacts your family and friends.

    For would-be Saver-Investor millionaires, accumulating wealth requires that you make a habit of making “saving” the first “bill” you pay with every paycheck and then learning to live off of what’s left of your paycheck. When you make a decision to save first, this forces you to reduce your cost of living, so that you are able to reach your goal of saving 20% or more of your net pay. This allows you to put your savings to work by prudently and consistently investing those savings, so your savings can grow – even while you sleep!