What is Folio Number in Mutual Funds?: If you invest in mutual funds, folio numbers are crucial. It’s similar to the account number given to you when you open a bank account. The definition and meaning of the Folio Number are explained in this article. Finding and maintaining the folio number is also briefed in this article.
Folio Number
When a mutual fund investor invests in the fund, an asset management firm assigns him or her a folio amount.
- It’s similar to the account number given to you when you open a bank account.
- The folio number is used to classify fund investors and track information like how much money each investor has put into the fund, their transaction history, and contact information.
- When you make your first mutual fund investment through one platform, a folio number is created. For instance, you purchased Mutual Funds using Zerodha Coin and the Groww App. You will be assigned a folio number for each mutual fund on each platform.
- Each fund house has its Folio number. As a result, when you invest in the XYZ fund for the first time, you will be given a folio number different from the one you were given when you invested in the ABC fund.
- For all investments made under the same unit-holder combination, most fund houses have one folio number and many account numbers in the same folio. This makes it easier to keep track of all of your assets with the same fund house.
- Some investors purchase mutual funds from the same mutual fund business in various ways, such as via a broker, directly through one platform, and other platforms. As a result, they may have different folio numbers for the same Mutual Fund firm. You can, however, combine all of your assets into a single folio number at any time.
- The folio number can also be seen on investment statements or requested from the fund house.
Folio Number’s Benefits
- It’s the most convenient way to look up an investor’s background.
- The investor’s folio number can be used to track funds invested in various fund plans.
- It will look up transaction history and contact details for investors.
- Using the folio number, obtain investment statements at any time.
- Use this number to get an instant list of your AMC units.
- It eliminates the need to go through the KYC process with the same fund house again.
- A folio number not only saves investors the trouble of remembering hundreds of account numbers in their phone or diary, but it also allows them to transact from anywhere at any time.
- As a result, it assists the AMC in verifying the unit holder’s authenticity.
Folio Number Mentioned on the Mutual Fund Account Statement
In two or three days of investing in a scheme, you will receive a fund statement. If you requested a physical copy, it would arrive in seven to ten working days; if you requested an email copy, it would arrive in three to four working days.
You can always contact the AMC/RTA that manages your fund if you have not got one.
A Mutual Fund Account Statement is sent by the mutual fund firm and contains all of the information about one’s investment.
Things to Search for in the Mutual Fund Account Statement
- Keep track of your folio number in a safe place.
- To prevent complications at the time of redemption, double-check that the bank’s name and account number are correct.
- Make sure you’ve completed your KYC requirements and filed your FATCA declaration. FATCA is a US law that requires Indian fund investors to declare whether they are US citizens or not, according to an India-US treaty.
- Check out the details of your purchase. This section lists the different types of transactions you’ve chosen, such as purchases, SIPs, SWPs, and so on.
- If you invested through an agent, the account statement would display his or her name code and EUIN number.
- Recognize the load structure. It tells you what you need to know about your investment’s entry and exit costs.
What is the Significance of the Folio Number to Investors?
Statements from mutual funds are significant because they summarise your investment history in that fund. A bank account statement, for example, displays any purchase you make on a specific bank account. As a result, the folio number is a crucial part of your mutual fund statement. You must ensure that this number remains consistent each time you invest. It will be simpler for you to handle your investments with the AMC if you use the same folio number. They must give you an email statement within 2-3 days of your investment and a hard copy within 7-10 days.