1. What is a Folio Number?
You will get different folios for different mutual funds. However, if you hold more than one share of a mutual fund, one folio number will do for all of them. It represents your shares in a mutual fund scheme. Therefore, systematic storing of mutual funds records and data is essential to ensure transparency. It is also easy to settle disputes with the Folio Number records. So, you can quickly obtain it from your mutual fund statement or from the fund house or broker itself.
At the time of application, the column for the folio is left blank. The fund house or the asset management company generates the number only after your first investment. For instance, if you become an investor in Fund A, they assign you a folio different from that assigned by, say, Fund B. Therefore, you may buy different funds under different folios. However, it will be easier if you can even get the AMC to combine every holding under one number.
2. How Folio Number is relevant to investors
A mutual fund statement is important because it summarises your investment trail in that fund. Similar to how a bank account statement shows every transaction you do. Hence, the Folio Number is an integral component of your mutual fund statement. You must make sure that this number is the same every time you invest. Using the same Folio will make it easier for you to manage your investments with the same AMC. They must email a statement to you within 2-3 days after investing, and a hard copy in 7-10 days.
3. Advantages of Folio Number
a. It’s the easiest way to check an investor’s track record
b. Folio can trace funds deposited by the investor in different funds
c. It can dig up transaction history and investor’s contact info
d. Avail investment statements for any periods using the folio number
e. Use this number to get a list of your units with the AMC instantly
f. It can save you from future KYC processes with the same fund house
g. Besides saving investors the hassle of noting hundreds of account numbers in phone or diary, a folio helps to transact from anywhere anytime
h. It, therefore, helps the AMC to verify the authenticity of the unit holder
4. How to Find your Folio Number
Earlier, checking the mutual fund statement was the only way to find folio. Therefore, if the statement gets lost or damaged, investors went through a lot of difficulty in procuring a new one. But not anymore. There are multiple and easy ways to find or retrieve your folio, as shown in the table.
Consolidated Account Statements (CAS)
|App or Website of the AMC||
Mutual Fund Statements
|Like bank issues passbook for savings or salary accounts||You can make your fund transactions app-based or online||Fund house gives it to investors at the time of purchasing the fund|
|They issue it monthly for free. There will be extra charges for other statement requests||Both the app and online portal are commission-free||AMC charges requests for new copies accordingly|
|Reflects info about the entire scheme including folio||Folio is available on every e-statement||You will receive the folio number as email and SMS|
Keeping your folio number (saved) with you at all times can be useful. This will allow you to check on your fund performance and make decisions at any time. Therefore, if you haven’t considered mutual funds as a good investment avenue, now is the time. ClearTax Save is a convenient option as we have hand-picked best-performing funds from India’s top AMCs. Start investing.