Mutual funds are one of the most popular investment options among Indians. Investors are also looking at mutual funds to achieve their long-term financial goals. However, investing in mutual funds is just not enough—it's important to also monitor these investments regularly.
You can easily track your investments with a folio number. In this blog, let's understand more about folio number and their importance:
Understanding Folio Number
A folio number is an alphanumeric code assigned by mutual fund companies to investors. This unique identifier is a reference for tracking all investments made under a specific mutual fund scheme.
When you make your first investment in a mutual fund, a unique folio number is generated specifically for you. This number stays the same for all future investments you make in the same scheme so that you can manage and keep track of your investments.
You can find your folio number in the mutual fund statements provided by fund houses, brokers, or investment platforms. When you apply for a mutual fund, the folio number section in your application is left blank at first.
Once your initial investment is processed, the Asset Management Company (AMC) or fund manager assigns the folio number to your account.
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Check Your Folio Number
Here are ways with which you can track the status of your mutual fund investments with a folio number:
Online Tracking Through AMC Platforms: Visit the website or app of the AMC where you’ve invested. Log in using your credentials and enter your folio number to access details such as your fund balance, transaction history, and other information.
Using Registrar Websites: Many mutual fund registrars provide online services to check your fund status. Register on their platforms with your PAN and mobile number to gain access. Once registered, you can use your folio number to view your investment details.
Reach Out to Your Broker: If you invest via a broker, they can assist you in checking your mutual fund status. Share your PAN with them, and they’ll liaise with the AMC to retrieve information about your investments.
Contact AMC Customer Support
You can also visit the AMC office in person with your folio number and PAN to request your mutual fund details. Once your identity is verified, they’ll provide the required information.
Refer to Your Consolidated Account Statement (CAS)
NSDL and CDSL maintain comprehensive records of your mutual fund folios and demat account holdings. They send you a CAS periodically, which lists all your investment details in one place. You can refer to this document to track your mutual fund status.
Benefits of Using a Folio Number
Setting up a system to record all transactions between you and a mutual fund is necessary to ensure you receive the returns you’re entitled to.
You’ll have a single folio number for a specific mutual fund. If you are assigned multiple folio numbers, you can request your fund manager to merge them into one for simplicity.
Let's understand the benefits of a folio number:
Tracking of Investments: Folio number lets you easily monitor all the investments you have made across different mutual fund schemes.
Access Investment Records Quickly: It is a simple way to check your transaction and investment history without hassle.
Maintain Updated Contact Information: Fund houses use folio number to track your contact details and transaction history for easy communication.
Skip Repeated KYC: Once you have a folio number, you do not need to undergo the KYC process again for additional investments with the same AMC or fund house.
Retrieve Mutual Fund Details Instantly: With your folio number, you can immediately access a list of your mutual fund units and other details from the AMC.
Simplify Account Management: This system eliminates the need for multiple account numbers so that you can perform transactions anytime and from anywhere.
Enhance Verification: Fund houses can also use your folio number to verify the authenticity of unitholders.
Can a Single Individual Have One or More Folio Numbers?
You can have multiple folio numbers. This provides operational flexibility in mutual fund investments.
If you invest using multiple folio numbers within the same fund house, you can get tax benefits. If one folio generates a profit and another incurs a loss, you can choose which investment to sell first. This allows you to save up on taxes. However, if all your investments are tied to a single folio number, you must follow the First In, First Out method for taxation purposes.
Despite the potential benefits of having multiple folios, it’s generally recommended to consolidate them into one for easier tracking and management of your investments.
Stay Updated on Your Investments
Tracking your mutual fund’s performance is important when it comes to achieving your financial goals. By actively monitoring your folio numbers and investment performance, you can manage your portfolio better and make smarter and more informed decisions for your financial future.
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