A folio number is akin to a bank account number. In our life, we have different and separate numbers each serving a different purpose and linked to a separate account. Some of the important ones are Permanent Account Number (PAN), Bank account number and passwords, Customer Identification Number (CIN), Aadhar Card number among others.
Folio number is to mutual funds, what a bank account number is to a bank account. It serves as an identity of the mutual fund investor. It is the gateway to unlocking relevant investor and investment information.
Just like a bank account number is the identity of the bank account holder. It is the gateway to relevant information about the bank account holder and his account details such as account balance, type of bank account, bank branch details, etc.
What is a Folio Number?
A folio no is a unique number allotted by the Mutual Fund Company or Asset Management Company (AMC) to the mutual fund investor. It is similar to an account number with the AMC, just like a bank account number with a particular bank.
Investors need not worry about getting a folio number upon the purchase of any mutual fund. It is automatically assigned to each mutual fund investor by the AMC.
A mutual fund folio number gives each mutual fund investor of a particular AMC, a unique identity. It can be used by the mutual fund investor to track his investments, update his personal information, and access any information related to the purchase of the mutual fund, at any time whatsoever. It is essential to ensure that an accurate record-keeping system is in place.
Mutual fund folio number is essential not only for the mutual fund investor but also for a mutual fund company.
It helps the AMC to maintain and update from time to time, credible records and information about the mutual fund investor. It serves as an identity for each investor in a particular scheme or investors in multiple schemes of an AMC.
Multiple Folio Numbers
Whenever an investor invests in any particular scheme of an AMC, he/she is automatically assigned a mutual fund folio number. Thereafter any subsequent purchase of the same or a different scheme by the same mutual fund company can be represented by the same folio number.
However, mutual fund investors must note that it is not compulsory to use the same folio number while investing in the same or a different mutual fund scheme of the same asset management company.
In case an existing mutual fund investor wants to invest in a new scheme of a different mutual fund company, the same or existing folio number cannot be used. A new folio number shall be automatically assigned to the investor while investing in a new scheme of a different AMC.
How to Get Folio Number?
The folio no can be accessed via various means. These are as follows:
Mutual fund statements
Whenever an investor purchases a particular mutual fund scheme from a mutual fund house, he/she receives a set of documents containing the details of the purchase.
Such information is automatically sent to the registered email address and phone number of the investor. The statement contains relevant details of purchase including the folio number, details of the scheme, etc.
Consolidated Account Statements (CAS)
Consolidated Account Statement is a statement where an individual gets the detail of all the financial statements at a single place.
It majorly gives the detail of all the mutual fund investments under a single PAN. The CAS computes the statement of transactions and holdings of investors account held with NSDL and CDSL.
This statement is akin to a bank passbook. CAS contains all relevant details about mutual fund investment, including the folio number.
A mutual fund folio number is akin to bank account number. It is automatically allotted to each mutual fund investor upon purchase. Each scheme purchased under a different fund house attracts a new folio number.
A folio number serves the purpose of systematic record-keeping for both the asset management company and the mutual fund investor. One may check the scheme details, transaction history, and details, contact details via the mutual fund folio number.
Disclaimer: the views expressed here are of the author and do not reflect those of Groww.