Can I transfer mutual fund in my wife's name and avoid tax?

Ans: Gift received from relative (spouse included in its meaning) is not considered as income from other sources and will not be liable to tax. Further, income earned by spouse from the amount invested will be clubbed in the hands of Husband (gift giver).

Ans: Unfortunately, you cannot directly transfer a mutual fund from your name to your wife's name. Mutual fund units are typically linked to the investor's PAN card and cannot be easily transferred to another person.  

Alternative Options:
Redemption and Re-investment:

You can redeem the mutual fund units in your name.  
Transfer the money to your wife's account.
Your wife can then invest the money in new mutual fund units in her name.
Gifting the Money:

You can gift the money equivalent to the mutual fund value to your wife.
She can then invest the gifted amount in mutual funds.
Tax Implications:
Redemption and Re-investment:

If you hold the mutual fund units for more than a year, the capital gains are generally long-term and taxed at a concessional rate.  
If you hold the units for less than a year, the capital gains are short-term and taxed as per your income tax slab.  
The income earned by your wife on the new mutual fund investment will be taxed in her hands.
Gifting the Money:

There is generally no gift tax in India, so gifting money to your spouse is usually tax-neutral.  
The income earned by your wife on the mutual fund investment will be taxed in her hands.
Important Considerations:

Gift Tax Laws: While there is no gift tax in India, certain conditions and limits might apply in specific cases. It's advisable to consult a tax professional for detailed guidance.
Income Tax Implications: The taxability of the mutual fund income will depend on factors like the holding period, type of fund, and individual tax slabs.
Financial Planning: Consider your overall financial goals and risk profile before making any decisions.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

Ans: Yes its better to transfer or gift mutual funds as the tax implications on gain will be in your hands at redemption
In case of sale of house , you will have to make gift deed and other documents which will have costs