Each mutual fund investor has a certain number assigned to them called a folio. When we open a bank account, it might be compared to an account number. The asset management company issues a folio number when a mutual fund investor buys a fund. Find more about fun folio, the significance of UTI folio numbers, and more in this article.
What is Mutual Fund Folio?
A folio number in a mutual fund is a one-of-a-kind identifier assigned to each mutual fund investor. When we open a bank account, it’s equivalent to getting a bank account number.
When a mutual fund investor buys a fund, the asset management organization assigns it a folio number in a mutual fund. However, there is no limit on the number of folios that can be used. Different folio numbers in mutual funds might be assigned to different funds by an investor. However, having a single or UTI folio number for each client makes it easier for both the mutual fund company and the investor to keep track of their holdings or assets.
Folio numbers in a mutual fund can be used to keep track of things like how much money an investor has put into a fund, transaction history, and contact information. The folio number can also be found on investment statements or obtained by contacting the fund house. The folio number is left blank in the application form when you register with a mutual fund house. When you make your first mutual fund investment, a UTI folio number is generated. Some investors continue to purchase mutual funds with multiple folio numbers. A mutual fund distributor or AMC (Asset Management Company) can consolidate all of an investor’s holdings into a single folio number at any time.
What is a Folio Number?
The term “folio number” is crucial to understanding mutual funds. Similar to a bank account number, folio numbers are unique and used to identify your ownership of the specific mutual fund. Each fund house has a different unique number. Only a current investor is considered to have a folio number; new investors are not. A new investor should skip the folio number column on the form because he won’t be given one until after making the investment. Using the same folio number within the same Mutual Fund, an investor is able to make several transactions. In the long term, this saves you a tonne of hassle when tracking your investments.
How Many Folio Numbers Can One Possess?
A mutual fund investor can have multiple folio number in mutual funds in the same AMC both with and without a different scheme.
- Through several folios, one can invest in a variety of schemes.
- They can invest in multiple schemes in the same portfolio.
- Investors can choose to invest the entire amount in one scheme but through different folios, if they want to keep the nominee’s name, bank account information, or holding pattern distinct in each folio.
- Investors can invest through several folios by completing new application forms each time they invest in the same AMC, even if the nominee’s name, bank details, or holding pattern are the same.
Key Takeaways
- A folio number in mutual fund is a unique identifier that is used to track investments or real estate.
- Fund folio numbers are frequently used by lawyers, bank creditors, and investors in their businesses.
- Folio numbers in mutual funds are used by mutual funds to identify account holders in their investment pool.
How is Folio Number Relevant to Investors?
Statements for mutual funds are significant since they summarise your history of investments in that fund, just like how a bank statement details each transaction you make on your bank account. The folio number is a crucial part of your mutual fund statement. Every time you make an investment, you must ensure that the folio number in mutual fund remains constant. If you use the same folio number, it will be simpler for you to handle your investments with AMC. After you invest, the selected AMCs are required to provide you with an email statement and a paper copy in 7–10 days.
Advantages of Folio Number
The mutual fund folio can be beneficial and advantageous for mutual fund investors. Here’s a look at its uses and benefits:
- The AMC uses the folio in mutual fund to verify the authenticity of its investors.
- It provides investors with a summary of all transactions that have occurred in their accounts.
- It is easier to trace an investor’s investments if they use the same folio in mutual fund for different schemes.
- The folio number can be used to verify an investor’s account statement and transaction history.
- For future investments, investors might circumvent the KYC procedures. They only need to supply their folio number, and the AMC will examine your past fund schemes for KYC compliance.
- Investors can easily make transactions in their mutual fund scheme by simply entering the folio number.
Read More: Best Performing Mutual Funds in India
How to Find Your Folio Number
Until recently, the only way to find your folio number in mutual fund was to examine your mutual fund statement. Investors had to go through a lot of trouble to receive a fresh statement if the old one is lost or damaged. However, that is no longer an issue. You can easily find or retrieve your folio number in a number of ways, as mentioned below:
| Consolidated Account Statements (CAS) | App or Website of the AMC | Mutual Fund Statements |
| Similar to bank passbooks for savings or salary accounts | Fund transactions can be made through app or website | Shared by the fund house at the time of purchasing the fund |
| It is issued monthly for free, but there extra charges are levied for other statement requests | Both methods are commission-free | Investors are charged for requests for new copies |
| Includes information about the entire scheme including folio | Folio number is available on every e-statement | You will receive the folio number in an email and SMS |
Where Do I Locate My Folio Number for a Particular AMC?
Before you start checking your account statements, first and foremost you need to check where your fund folio number is. It is advised to maintain an online and offline record of all your fund folio numbers, account details, and credit and debit card details for easy and safe access. However, assuming that you have not kept any record, locating your fund folio number is quite simple. Here is how to do it:
- The fund folio number can be found in the top corner of the Consolidated Account Statement (CAS) that the AMC sends to you.
- The fund folio number can be found in the top corner of the Consolidated Account Statement (CAS) that the AMC sends to you.
- In order to obtain your registered fund folio number, AMCs also provide the option to phone a specific toll-free number or send an email from your registered email address.
- There is also the physical method, which allows you to enter any AMC or registrar branch and request the folio number after properly identifying yourself.
How to Check Mutual Fund Status with Folio Number?
Some of the most popular ways through which you can check your mutual fund status with your fund folio number include:
Check Your Mutual Fund Status Online
People have become tech savvy with a majority of them now investing online thanks to various websites and apps. You can now easily verify the status of your mutual funds using your fund folio numbers on the websites of AMCs and registrars like CAMS and Karvy. On the website, you can register once and keep track of your performance.
Checking Mutual Fund Status Through the AMC Office
If you do not wish to do it online, you can visit the AMC office to get your statement printed. All you need to do is provide them with information like your fund folio number and PAN. You can keep track of and learn the status of all of your investments for that folio with the aid of the AMC. However, it becomes difficult if you have assets in many AMCs for mutual funds because you would need to contact each one separately and with the appropriate folios.
Check the Status Through Registrar Website
Another way to check your mutual fund status is by visiting the website of the Mutual Fund Registrar, who serves as the fund’s record keeper. The majority of the funds will use one of CAMS or Karvy, two of India’s biggest registrars, as their registrant. You can access the statement by entering your PAN, fund folio number, and registered mobile number on the registrar’s website.
Take Help From Your Advisors
If you are one of those people who choose to make their fund investments through an advisor, they can assist in connecting you with the relevant AMC or registrar for the required information.
Conclusion
Fund Folio numbers are useful to bank creditors, lawyers, and regulators, in addition to mutual funds and their unit holders. Investigators will utilise fund folio numbers to create an audit trail to monitor where specific funds or assets have flown in or out, identifying new folio numbers along the way, for example, in the instance of suspected fraud. Folio numbers are also necessary for identifying duplicate ledger entries and assuring the accuracy and reliability of a company’s financial reporting.
It’ll come in helpful at any time if you keep your folio number preserved. Investors will be able to track their mutual fund investments’ performance and make more informed selections as a result. It’s worth noting that the rise in electronic record-keeping demands the need for more effective digital tracking alternatives, but it also reduces errors and allows for faster reconciliation of various entries.
FAQs on Fund Folio
If you’re unsure how to invest in a mutual fund, keep in mind that you’ll need a bank account, KYC / CKYC, PAN, and Aadhaar cards. This has been made mandatory to ensure Mutual Funds are not used by a few unscrupulous investors for money laundering purposes.
Before choosing the best Mutual Fund program to invest your hard-earned money in, you must conduct thorough research. Investors frequently look at plan categories and the best-performing schemes within those categories, but typically overlook risk indications for these schemes. Don’t forget to compare the riskiness of the various schemes while making your decision.
Banks are in the business of saving and lending, whereas Mutual Funds are in the business of investing. When you put money into a savings account or a fixed deposit, you are saving, whereas when you put money into Mutual Funds, you are investing.
Investors in mutual funds who have made long-term investments through SIPs are continually concerned about market drops throughout this time. SIPs have been designed to overcome the risks associated with Mutual Fund risks like volatility and market timing.
Yes, you can use the same folio number to make investments in different schemes with the same AMC.
To change any of your current information in an existing folio, you can download the appropriate form from your AMC’s website., Fill in all the required personal and bank details, and submit the signed form along with a cancelled cheque and ID proof to your AMC.
You can only use the same folio number for investing in different schemes with the same AMC.
Also Read: High Risk Mutual Funds
