Purchase of mutual fund

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This query is : Resolved

Abhishek Roy Choudhury (Querist)

05 October 2018 Dear Sir,
Whether Mutual Fund can be purchased in the name of Partnership Firm or not.

Thanks,
Abhishek.

Shiv Shankar Kumar

Shiv Shankar Kumar (Expert)

06 October 2018 Yes, a partnership firm can invest in mutual funds, as it can open and operate a bank account. Of course, a partnership firm is not a separate legal entity like a company incorporated under the companies act. Therefore, the partners are technically joint owners. ... Yes,partnerships firms / LLPs can invest in mutual funds.

CA GUNJIT KAUR-FACULTY AT ICAI

CA GUNJIT KAUR-FACULTY AT ICAI (Expert)

06 October 2018 A partnership firm doesnot hold a separate legal entity as a corporate but it can have a bank a/c in its name, it can hold shares, units of mutual funds and make invesments in name of the partnership firm
which will ultimately be owned by partners in agreed ratio since when we lift the veil, partnership is nothing but a deal between the partners who are actually the owners and liable for all debts of the partnership firm.
Thus a partnership can buy mutual funds in its name.
Hope this resolves your concern
Thanks

Abhishek Roy Choudhury

Abhishek Roy Choudhury (Querist)

09 October 2018 Dear Sir,
Thanks a lot for your Reply. One last query is that if the firm wants to sell the Mutual Fund then whether it will fall under the Capital Gains or not.

Thanks,
Abhishek.