What's a Folio Number and Why Do You Need One?

When you put your money into mutual funds (which are a way to invest in stocks and other things), there needs to be a way to remember who owns what. But since many people might have similar names, using names isn't practical. So, just like a bank gives you an account number, mutual funds give you a "folio number" that's unique to you. This helps them know what you own and who you are.

Why Folio Numbers Are Important

Think of it like this: when you buy stuff with your bank account, you get a list of what you bought. Mutual funds do the same thing. Your folio number is like a bookmark in a book – it helps you find all the pages (or transactions) related to your investment. So, every time you invest, make sure your folio number stays the same. This makes it super easy to keep an eye on your investments.

Understanding The Relevance of Folio Number

Folio number is an integral and significant part of investors’ mutual fund statements. Just like how a bank account statement reflects every transaction you do on a particular account with every detail, similarly, a mutual fund statement reflects information by reflecting your investment trail in that fund. Thus, you must make sure that this number is the same every time you go forward with investing your money. This will make it very convenient for you to manage and keep track of your investments with the fund house. Most often, an email consisting of a soft copy is sent within 2-3 days after investing, and a hard copy in 7 to 10 days.

Where to Find Your Folio Number

Following are some effective ways through which you can retrieve your folio number check:

➤ Consolidated Account Statement (CAS)

As the name suggests, CAS reflects money holding in a scheme. It reflects the plans and schemes in which an investor is invested in, purchase price, the amount invested, and the units thereon. Additional information in CAS includes bank details, folio number, contact and mailing details, nominee details among others. This statement is issued on a monthly basis.

➤ Mutual Fund Statement:

When investors invest in a mutual fund plan from the AMC or the fund house, they receive a set of documents via SMS and email. Folio number can be spotted in this statement and is very similar to that of the bank account statement. The format of this statement varies across fund houses but the basic information and components remain the same. Keeping the record of the folio number is important as it is the reference of the investments made. It is a great practice to ensure that the folio number is the same across all the investments as multiple folio numbers will make it difficult and cumbersome for you to track investments.

➤ Others:

Folio numbers can also be found in the SMS or email that you receive from the fund house or AMC while starting your investment or getting updates.

Is More Than One Folio Number Okay?

The answer to this is a yes. You can have multiple folio numbers which can benefit you from the operational aspect of investing in mutual funds. For example, investors choosing to invest through multiple folio numbers under the same AMC have some benefits. If they have gained in one while a loss in another, they have the flexibility to opt and choose which investment to sell first as per their tax efficiency.

Nevertheless, if investments are in one folio - the first in-first out phenomenon is used from the taxation aspect. For equity investment, which is generally a long-term commitment, it is advised by the financial professionals and advisor to use a single folio. Also, mutual funds provide the facility of consolidating all the folio in a single master folio for administrative convenience.

Why Folio Numbers Are Cool

➤ Easy Tracking: Think of it as a map for your money adventures. You can easily see where your money goes.

➤ Know Everything: Your folio number helps you find out all the stuff you did with your money, like buying or selling things.

➤ Easy Money Moves: You can use your folio number to buy and sell stuff without worrying about remembering lots of different numbers.

➤ Time Saver: It saves you from doing the same boring paperwork again and again when you invest with the same company.

➤ Proving It's You: It's like showing your ID to prove it's really you. Also, you can get special papers about your investments whenever you want.

➤ Seeing Your Progress: With your folio number, you can keep an eye on how much money you put into different mutual funds and how much you got back.

FAQs - About Mutual Fund Folio Number

Q. What is the folio number?

A Folio number is a unique number provided to investors when they make investments. The AMC uses this to check the holdings under the name of the person to whom the folio is linked.

Q. What is the relevance of the folio number?

Folio number is an integral and significant part of investors’ mutual fund statements as it reflects information by reflecting your investment trail in that fund.

3. Where can we find our folio number?

You can find your folio number in the mutual fund statement, consolidated account statement, or the Email/SMS sent by the AMC.

4. What are the key benefits of folio numbers?

Some of the key benefits of the folio number are that it saves time, is feasible, provides details and information, and hassle-free transactions.

5. Can you have multiple folio numbers?

Yes, you can have multiple folio numbers and this has its own merits and demerits.

More Information:

Information Ratio: Meaning, Features, Formula, Example
What is Sharpe Ratio - Formula, Calculation & Comparison with Information Ratio
PE Ratio (Price to Earnings Ratio) - Meaning, Formula, Types, Limitations
What is Expense Ratio in Mutual Funds & How they Work
Section 80TTA Deduction Limit under Income Tax Act
Section 80D - Deductions, Tax Benefits, Claim Amount, Example
Loan Against Fixed Deposit (FD): Eligibility, Interest Rate, Documents, Process
RD vs SIP - Risk, Returns, Benefits, Tenure, Comparison, Which is Better Investment
Difference between Large Cap, Mid Cap and Small Cap Funds
ELSS vs ULIP: Risk, Cost, Returns, Coverage, Tax Benefits, Which is Better