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Mutual Fund Folio
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A Mutual Fund Folio is a unique number allocated to you by the mutual fund registrar for the investment that you made in a mutual fund.
It like a bank account number.
All your investment transactions, summary and historical data of your transactions, contact details etc. will be lodged under the folio.
For instance, it shows, how many units are allotted / redeemed to you when you make purchase / redemption in a scheme.
Because folio numbers are unique, no two investors will have the same folio number.
Can I open multiple folios?
In general, an investor can open any number of folios as needed.
There is a concept of zero balance folios offered by some mutual funds as well which means that the folio contacts your contact details only and you can make your investments in future in it.
However, what is the use of having a bank account with no money in it?
Though one can open any number of folios under a mutual fund, it is always good to have a single folio than multiple folios with the same fund house.
The advantage is that you can move funds from debt to equity or vice-verse easily.. even when u redeem units, u can redeem from one single place instead of logging in to several folios and placing the redemption request. Above all tracking will be extremely easy.
Related Topics
- Introduction to Mutual Funds
- Asset Management Company
- New Fund Offer (NFO)
- Net Asset Value or NAV
- Know Your Customer / KYC
- Exit Load
- Systematic Investment Plan and Compounding effect
- Lessons