What Is the Relevance Of Folio Number In Mutual Funds?

A fund folio number is a unique number assigned by the fund house to an investor to conduct subsequent investments. It is often compared to a bank account number, which differs from person to person and fund house to fund house. 

Investors can easily obtain their mutual fund statement from the fund house and update personal details with a folio number. Thus, it is crucial to keep this number safe.

To know more about folio numbers and its benefits, read on!

Understanding Folio Number

Folio number is a unique identity code issued to mutual fund investors; this helps in linking their account with the particular mutual fund. This number also assists in tracking different aspects of investment, including transaction history, contact details and the sum invested to date. 

You can access your fund folio number from your mutual fund statement, broker or fund house. During the mutual fund application, the space for the folio number is not filled. The AMC or fund manager fills this space after you make your first investment. The folio number can either be alphanumeric or numeric.

Furthermore, there are no restrictions regarding the number of folio numbers you are allowed to have. For instance, you may have different numbers for different funds. However, investors should refrain from having too many folio numbers for better management.

Also Read: What Are SWP Mutual Funds?

Relevance of Folio Number in Investments

Setting up a system that records all transactions carried out by an investor is crucial for a fund house. AMCs can conduct such management efficiently by allotting folio numbers to all investors. This will also help AMCs determine which fee structure applies to each investor.

Typically, an investor receives one single folio number for each investment made towards a particular scheme. If an individual receives multiple fund folio numbers, he/she can ask the fund manager to consolidate all these numbers into one. 

The relevance of folio number has recently increased due to the heightened usage of electronic record-keeping facilities.

Advantages of Fund Folio Numbers

A few significant benefits of fund folio numbers are as follows:

• Investors can use it to track various investments made by them.
• Fund houses can check investors’ transaction history and contact details through this number.
• Owing to a fund folio number, investors do not need to complete a fresh KYC registration with the same fund house.
• Individuals can also generate their investment statement for a particular period through their folio number.
• Investors can use this number to get information regarding their list of mutual fund units with an AMC.
• This system eradicates the need to maintain multiple account numbers and assists investors in making investments from anywhere, anytime.
• Folio number enables AMCs to verify the identity of various investors.

Evidently, the relevance of fund folio number is highly crucial if one needs to invest in mutual funds.

Ways to Find the Fund Folio Number

You can locate your folio number in the following ways:

• Mutual fund statement

You get a mutual fund statement after making an investment. The AMC provides this either in the form of email, physical statement or SMS. Note that if you need extra copies of this statement, you will have to pay additional charges.

• AMC’s website or app

Another way to know your folio number is by visiting the app or website of the AMC. You will be able to locate this number on the e-statement generated every month. Remember that you will not have to pay additional charges if you want to locate your folio number through this platform.

• Consolidated account statements

This is similar to bank passbooks that are issued against a savings account. With this, you can easily access information regarding the scheme you have invested in, along with your folio number. AMCs generate consolidated account statements without levying any charges. However, you will have to pay extra charges for other statement requests.

Also Read: List Of Asset Management Companies In India

Final Word

Keeping your fund folio number safe will be of great use till the time you stay invested. This will allow you to check your mutual fund investments performance over time and assist you in making informed decisions. 

Frequently Asked Questions

1. What if I forget my folio number?

You do not have to worry if you have forgotten your folio number, as you can always refer to your mutual fund statement to locate that. Alternatively, you can also refer to the CAS to find this number. In addition, you can ask the RTA to search your folio number based on your PAN or mobile number. 

2. How can I generate a consolidated account statement?

You can easily get your CAS online via NSDL, AMFI, CDSL or CAMS. To generate this, simply visit their official website and click on Investor Services. After that, click on Consolidated Account Statement. Provide details of your email ID and password to submit your request. You will receive the CAS on your registered email ID after following these steps.

3. What are a few other benefits of CAS?

You should have your consolidated account statement with you because it helps in reviewing a fund’s performance and reduces the need for paperwork as you can assess your portfolio under a single report. In addition, CAS provides you with complete details regarding your transactions, which can help you in identifying tax liabilities.

4. Can I consolidate folios across different funds?

Yes, it is possible to consolidate folios across different funds, provided that you conduct all investment activities within the same fund house. To do so, you simply need to provide a letter to your fund house to consolidate your fund folio numbers into a single master folio number. This will help you to keep track of your investments in a better way.

5. Under what circumstances can I not submit a request for folio consolidation?

You can ask the AMC to consolidate your folio numbers if the holding mode in one folio is single, while the mode of holding in another folio is joint. You can consolidate your folio numbers only if the order of holding, mode of holding and the holder’s name is the same across all folios.

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Disclaimer: Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.

This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.