I am interested to know what is mutual fund folio number? Is it necessary to invest in mutual funds?Asked
A folio number is a unique number allotted to each mutual fund investor. It can be considered similar to a bank account number when we open a bank account.
When a mutual fund investor purchases a fund, a folio number is assigned by the asset management company. However there is no restriction on the number of folios. An investor can also have different folio number for different funds. But having a single or unique folio number per customer helps both mutual fund organization and the investor to track the holdings or investments.
Folio number can be used to fund investors’ track records of items such as how much money investor has placed with the fund, transaction history and contact details. An investor can also find the folio number on investment statements or can ask for it from the fund house. When you register with the mutual fund house, folio number is left empty in the application form. Folio number is generated when you make the first investment with the mutual fund.
Some of the investors keep buying mutual funds with different folio numbers. However you can request anytime your mutual fund distributor or AMC (Asset Management Company) to consolidate all your holdings into a single folio number.
Like a bank account number, a mutual fund folio number is a unique number to keep a track of your holdings. This folio number is required whenever you need to find the value of your investments and at the time of transactions. An investor can make multiple purchases by using the same folio number. However, there is no restriction on the number of folios that you can have with a particular fund house. A folio cannot have schemes from different fund houses. If an investor has various folios with the same fund house, they can ask the fund house to merge the folios. A folio is also useful not only for the investors but also for mutual funds as it helps them in maintaining a credible record system of each and every investor.
The folio number is automatically assigned to you when you invest in a mutual fund.
When you purchase a mutual fund, you are assigned a "folio" number by the mutual fund company (also called AMC or asset management company). This is like a account number with that particular AMC. Any subsequent fund you buy from the same AMC, be it same scheme or difference scheme, you can use the same folio number. However, it is not compulsory to use the same folio number.
You dont need to worry about getting a folio number, as it is automatically assigned to you when you purchase a mutual fund.
Example: Folio number looks something like 2189379.
Sometime investors keep buying mutual funds with different folio number. You can request AMC to consolidate all you holdings in a single folio.