How to consolidate your mutual fund | Multiple Folios in Mutual Fund | Motilal Oswal
How to consolidate your mutual fund | Multiple Folios in Mutual Fund | Motilal Oswal

How to consolidate your mutual fund portfolio

When Jwalant Desai started investing in mutual funds 10 years ago, he heard about the concept of mutual fund folio for the first time. The MF folio was a unique code allocated to Jwalant which he could use for future investments too. Over the last 12 years, Jwalant had invested in over 7 different Fund Houses and was having 18 different folios. For example, in the case of the same AMC he had a debt fund under a different folio, a SIP under a different folio and lump-sum investments under a different folio. He realized that it was getting just too cumbersome to manage 18 different folios and remember the numbers of all these. That is when he chanced upon his financial advisor Manish Shah who suggested consolidation of mutual fund folios. Here is how Jwalant learnt how to merge two folios and get multiple folios in mutual fund under a single target folio.

 

How the conversation on folios went about?

 

Jwalant: I am absolutely going crazy. Yesterday I opened my mutual fund folder and I found that I had more than 18 different folios in my mutual fund holdings and these are spread across 7 different AMCs. I just kept accumulating these funds along the way and never bothered about administrative issues.

 

Manish: Nothing to worry. There is something called consolidation of folios wherein you can merge multiple fund folios into a single folio. This will make administration much simpler for you. And the process is quite simple!

 

Jwalant: Wow that means I can consolidate all the 18 folios into a single folio. That is very interesting. Now I will have only one folio number to remember.

 

Manish: That is not possible at this point of time. You can only consolidate per AMC. In your case, since your 18 funds are spread across 7 AMCs, you can actually reduce your folios down to 7 folios. That is, one folio per AMC. That is perfectly possible. That will be a still a good improvement for you as the total number of folios will reduce from 18 to 7 making your life a lot simpler.

 

Jwalant: That is good enough for me. What do I need to do to consolidate my folios? Who do I write to?

 

Manish: There are two ways for you to consolidate the folios under a particular AMC. For example if you are holding 4 funds of an AMC  under different folio numbers, then you can write to the AMC or registrar with the folio numbers that you want consolidated and the target folio into which you want these folios consolidated. You can also download the form from the website of the registrar like CAMS or Karvy. You can fill up the form and submit to the nearest registrar outlet or the AMC outlet.

 

Jwalant: Is there a specific format for this consolidation of folios request?

 

Manish: While there is no specific format for the consolidation form, given below is the sample of what CAMS offers on its website. You can use this facility for any of the funds for which CAMS is the registrar..

 

 

There is a small point to remember here. Ensure that your name appears exactly in all the folios otherwise the folio consolidation request will be rejected. Once you consolidate, the target folio account’s PAN, bank details and address will be considered. In case you need to update the same, you can give the application along with the consolidation application itself.

 

Jwalant: Some of my folios are lump-sum investments and some are SIPs. Can I consolidate these two?

 

Manish: Nowadays most AMCs allow this facility to convert all your holdings into a single folio. Ensure that your target folios is the one in which the SIPs are running. That makes your job easier.

 

Jwalant: I have one last question. My fund holdings in two of my AMCs are currently pledged with the bank as I had taken a loan against these funds last year. Would that impact my consolidation request?

 

Manish: You can still go ahead and consolidate your folios. The only thing that the registrar will insist on is the prior consent of the financer which you can attach along with your application for consolidation of folios.
 

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