One way to check the growth of mutual fund investments is by the AUM growth. A much better way to check retail participation is via folios. Currently, there are more than 12 crore mutual fund folios in India out of which nearly 5.2 crore folios are SIP folios pertaining to dedicated systematic investment plans.
Understanding mutual fund folios
Let us for a moment just understand what is this mutual fund folio is all about? Let us you want to invest in a mutual fund AMC of say, HDFC MF or ICICI Pru MF. The first thing you do is to walk into the AMC office and ask for the form. Every investor (uniquely identified by the PAN number) needs one unique FOLIO number for an AMC. Effectively, if you are invested across 7 mutual fund AMCs then you need to have 7 folios. Once the mutual fund allots you a unique folio number, you can use this folios number for all your mutual fund investments pertaining to that particular AMC; either debt, equity or liquid funds.
Folio numbers can either be numeric or it can be alphanumeric. However, it could happen that you may create multiple folios in the same AMC over time. In such cases, it is possible to write to the AMC and get the folios consolidated into one single folio number for easier record keeping. Folios or unique folios give an approximate representation of the total number of unique investors in mutual funds, although there could still be duplications.
India has seen one of the fastest growth in mutual fund folios and stock broking and demat accounts in the post pandemic scenarios. The proliferation of bank accounts and cheap and quality internet access has also helped the rapid growth of capital market accounts. What is also visible in the last few years is the rising awareness among investors about the merits of investing in mutual funds and staying put for the long term. It is in this context that investors in mutual funds need to understand the concept of mutual fund folios and also how such folios can be used as a reference point to check the status of your mutual fund holdings. It is a simple and effective process and you can do it even online.
Who decides and allocates the folio number?
As the mutual fund investments have proliferated, folio number has become one of the most known words for mutual fund investors. Mutual funds need some system and mechanism to store data with respect to investments and transactions made by investors. This information is also used to determine the fees applicable to the investor and the fund they are entitled to.
How do we understand the concept of folios number. You can look at the mutual fund folio number as almost identical to a bank account number. It is a unique number pertaining to that specific bank. The AMC will use the folios number as the reference point to check the holdings which are linked to the particular folio number.
If you want to invest in a mutual fund through the AMC route, it is mandatory to have a unique folio number. While starting the investment in mutual funds, the fund house asks for all the required details and then these are mapped together to form a unique folio number that is allotted to the investor. Subsequently, your details are stored against folio number.
Advantages of having a folio number
Here are some of the key benefits for investors to have a mutual fund folio number.
- Investors can easily get a complete list of units invested in a particular AMC instantly by using this folio number as a reference point. It is quick and simple way to check.
- The asset management company or AMC is able to make a credible record system of its investors by identifying them with the unique folio number.
- It is important for investors as it saves time and effort since these investors do not have to go through the KYC process each time while transacting with the same AMC.
- The folio number is a kind of an all-India number and the record are maintained by the registrar based on the folio number. You can access it from anywhere in India.
Where do I locate my folio number for a particular AMC?
Even before checking account statements using folio numbers, the primary question is where to locate the folios number. Of course, it is always advisable to maintain an online and offline record of all your folio numbers, account numbers, credit card numbers etc for safe and easy access. But even assuming that you have not kept such a record, locating your folio number is quite simple. Here is how you can go about it.
- You can get the folio in the top corner of the Consolidated Account Statement (CAS) sent to you by the AMC on a periodic basis.
- When you transact through SIPs or through lump-sum investments or redemptions, a Mutual Fund Statement is sent to you. This statement also contains folio number.
- AMCs also offer to call up a particular toll-free number or sent an email from your registered id to get your registered folio number.
- There is always the physical option wherein you can walk into any of the branches of the AMC or the registrar and ask for the folio number after adequate identifying yourself.
How to check mutual fund status with folio number?
Here are some of the most popular ways through which investors can check their mutual fund status with the help of folio number.
Check your mutual fund status online
Thanks to smart websites and smarter apps, investors have become tech savvy and most investors are today investing through online mode. Websites of the AMCs as well as the websites of the registrars like CAMS and Karvy will assist investors in checking their fund status using the folio number. It is possible to do a one-time registration on the website and track performance. You need combination of mobile number and PAN card for the same.
Checking mutual fund status through the AMC office
If you are not too techno savvy, then the option is to walk into the AMC office and get the statement printed by providing details like folio number and PAN. The AMC will help you to track and know the status of all your investments for that folio. However, if you have MF investments across multiple AMCs, then it is cumbersome as you must approach them separately with respective folios.
Check the status through registrar website
Investors can also track the performance of their mutual fund holdings by visiting the website of the Mutual Fund Registrar, which is the record keeper of the fund. Two of the largest registrars in India are CAMS and Karvy, so most of the large funds will have one of them as their registrar. On the registrar website, you can enter the details of PAN, folio number, and mobile number and the statement is made available. Today, the registrars are also allowing you to consolidated folios across registrars using PAN mapping, and this process is a lot simpler for you.
Your advisor can also help you in this process
Many investors happen to invest in funds through an advisor. In these situations, the advisor can help get in touch with the concerned AMC or registrar and provide you the details. You pay advisors for the advisory service and they will always be happy to provide some add on service that helps you.
To sum it up; if you have your PAN number, folio number and mobile details ready, it is possible to procure the statement of holdings and the statement of transactions in the mutual funds either via the CAS or the transaction statement or by walking into the branch office. One of the most efficient ways is to opt for a consolidated statement across registrars.
