Investment horizons in India have been evolving in recent years. Investor’s aspirations and goals are widening due to digital evolution and innovative investment avenues. Similarly, mutual funds have gained significant popularity in recent years in India. Investors are getting accustomed to small regular investments in the form of Systematic Investment Plans (SIP) and earning potential returns almost equivalent to the market. There are 204.5 million active folios in India.
However, the popularity of investment concepts is not the only reason. The efforts and facilities provided by the regulators and intermediaries make it more viable for investments. One such facility is folio number. It can help investors easily know their mutual fund status. Let’s explore this folio number and its facilities more!
Also, read about: What are mutual funds?
What is folio number?
We have a bank account number to identify our savings, and specifically the account separately. Similarly, an account number in the mutual fund scheme is a folio number. It identifies investors separately based on their investments.
When an account is opened for mutual fund investment, investors need to provide their details for the process of Know Your Customer(KYC). The alphanumeric or only numeric code of the folio number is linked to the Permanent Account Number (PAN) of the investor, and is obtained after the first investment.
It is allocated by the Asset Management Company (AMC) when you first invest in that AMC’s scheme. All the scheme investments under an AMC will have the same folio number. Only when an investor invests in a scheme of different AMC does the folio number change.
Folio number is a crucial detail in mutual funds as it can act as your ID card for the AMCs. Moreover, it helps investors efficiently track their investments and compare their invested scheme under one AMC. Procuring mutual funds folio numbers is a seamless process due to online and offline facilities.
How to check folio number?
Every AMC generates an E-Consolidated Account Statement (e-CAS) that provides comprehensive details about an investor’s account with that AMC. It also includes the folio number. Moreover, investors can locate their folio number in mutual fund account statements.
Consolidated Account Statements (CAS) is one of the crucial documents for mutual fund investors. It is sent to investors through brokerage firms and contains detailed information regarding various investments of an investor. Moreover, investors request the e-CAS anytime from the RTAs.
Benefits of having a folio number
A folio number is an important credential that can be used in multiple ways, as follows:
- Digitalised portfolio access for the investors.
- Accessing transaction history along with timely mutual fund statements.
- Unique identification by the AMCs.
- Investors can value their fund holding with the help of folio number.
- The unitholder’s comprehensive details are stored in this unique number.
- Details of multiple schemes in one AMC are stored in one folio number.
- Regulators can check the fidelity of an investor with a folio number.
Can an individual have more than one folio number?
Yes, folio numbers are issued by the AMCs, and investors may invest in the schemes of different AMCs. However, investors can access all the schemes of a mutual fund AMC with only one folio number.
For example, one may have investment in the three schemes of Nippon India Mutual Fund and two schemes of Kotak Mahindra Mutual Fund. Now, the former three schemes will be operated under one folio number, while the latter two schemes in the other folio number. However, the schemes of Nippon India Mutual Fund and Kotak Mahindra Mutual Fund will be operated under separate folio numbers.
Mutual fund status
The status of mutual funds includes several factors that comprehensively showcase the performance and overall details of a mutual fund scheme. It includes details like:
- Net Asset Value (NAV): The total assets of a scheme with respect to the number of units in the market.
- Performance in terms of return on investment, comparative returns, volatility, etc.
- Asset allocation: The assets such as equity shares, corporate or government debt and other assets, like commodities.
- The expense ratio of a scheme: It is expressed in the form of % of total assets.
- The risk associated with the scheme and market conditions.
- Liquidity of a scheme and other factors.
An interesting read: Mutual Funds vs Stocks: Pros & Cons
How to check mutual fund status with folio number?
Following are the ways for the folio number check that can be facilitated through online and offline modes:
Online procedure:
Almost all the mutual fund processes are facilitated through intermediaries like registrars and transfer agents (RTAs). Investors can check mutual fund status online in the following ways:
- Most of the AMCs provide this service on their websites and applications. Investors can log in to such portals and look for the scheme’s section. It will provide them with all the details regarding the investment.
- One can also use the online portals of their brokerage firms to log in with a folio number and receive details regarding investments.
- The websites of RTAs like Karvy and Computer Age Management Services (CAMS) can also help investors after entering details such as folio number, mobile number, etc.
- The e-CAS provided by an AMC contains all the information regarding invested schemes. Usually, investors receive this document through email.
Offline procedure:
- The financial advisors managing your overall investments may help in procuring details of your mutual fund schemes.
- Investors can contact the toll-free number provided by the AMCs. Providing PAN and folio numbers can help investors with information regarding their investments.
- Moreover, investors can visit the office of AMCs to get the required details about the invested mutual fund scheme.
Tips to check mutual fund status
Investors can check their mutual fund status online and offline. However, some tips should be considered while checking the status:
- Mutual fund investments have market exposure and can be potentially prone to market fluctuations. Therefore, investors should monitor their investments regularly.
- Familiarise with some required concepts of mutual funds to ascertain their performance. These details are NAV, folio number, returns, risk, etc. Knowing your investments is a crucial step.
- One should duly consider their e-CAS and analyse their investments frequently to avoid any mishap. Moreover, this document can also help investors procure their folio numbers.
- If required, investors can consult financial advisors for help.
Summary
A mutual fund folio number is essential for an investor. It is a unique number that helps track investor’s details and investments in mutual funds. It is allotted by the concerned AMC and differs as per investments. Moreover, investors can procure their mutual fund status with the help of folio numbers online and offline. They can access the website and applications of their AMCs, brokerage firms, etc.
Check this out! Mutual fund overlap – Meaning and effects
FAQs
- What are the benefits of a mutual fund folio number?
The mutual fund folio number is the unique identification allotted by AMCs. It helps investors track their investments and get details regarding their performance. Moreover, it provides a unique ID for a particular investor to the AMC. Also, investors do not require multiple numbers for investment under one AMC.
- Where can I locate my folio number?
Folio numbers can be easily located in the e-CAS document, which is updated by AMC regularly. It can also be taken from mutual fund statements. The folio number is allocated by the AMC when an investor first invests in any scheme. Moreover, these documents also have details such as mutual fund NAV, units, asset allocation, etc.
- How to download mutual fund statements with folio numbers?
A mutual fund statement is a crucial document that includes information regarding the status of mutual funds, such as performance, NAV, returns, risk associated, etc. The statement is usually received through email by the investors. However, investors can also download it from the website or app or AMC.
- How do I check the mutual fund status?
Mutual fund status comprises various details. Investors can check their mutual fund status online and offline. In the online procedure, AMC’s website and application, the website of a brokerage firm, the e-CAS document, and RTA’s website can be accessed for mutual fund status. Moreover, in offline procedures, investors can visit their AMC’s office.
- What is e-CAS in mutual funds?
It is a document sent by the depositories through brokerage to the investors when they make any transactions. It is in the dematerialised forms and includes several details of an investor.
