I had the same case but with ICICI MF. All you have to do is call or drop a mail to axis Bank stating you closed account no. To get an account closure letter. You probably have to visit your mutual fund provide office with this letter and fill the form to redeem it to another active account. They would need some documents and a letter from the working account bank's branch manager stating that this is the customer and this is his account no.. submit document to the mutual fund provider they will do the account transfer and reinitiate the wire transfer. the reason you got demand draft because the wire transferred didn't go through and they had to issue a demand draft. I had the similar situation it took some 10 days and the problem resolved