Comprehensive guide to investing family funds in equity shares, mutual funds, corporate bonds, and fixed deposits through an HUF
Comprehensive guide to investing family wealth via HUF, opening HUF Demat & trading accounts, mutual fund SIPs, fixed deposits, and taxation of STCG/LTCG.
An HUF can open Demat and trading accounts in the name of '[Name of Karta] (HUF)'. Capital gains on shares and mutual funds are assessed in the HUF at standard direct tax rates.
SEBI Compliance and Direct Tax Rates
All coparceners must sign the Demat account opening application. See our [HUF Taxation Guide](/knowledge/huf-taxation).
Short-term capital gains on listed shares are taxed under Section 111A, while long-term capital gains above the statutory threshold are taxed under Section 112A. Also explore our [HUF Property Guide](/knowledge/huf-property).
Clear answers to common client questions
Yes. An HUF can invest in any mutual fund scheme through its dedicated bank account and Demat folio.
SKM Laws & Associates advises families, Kartas, and business owners on HUF formation, tax planning, partition, and dispute resolution.
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