Understanding your mutual fund performance is important through systematic tracking as it enables better financial choices. In any case, the easiest approach to tracking and monitoring your mutual fund investments requires using your folio number. This unique number allows you to easily view investment data, including past transactions and asset information. Moreover, this can be done through AMC websites, mobile apps, and Consolidated Account Statements.
In this blog, you can explore how to check mutual fund status with a folio number. Keep reading to learn more!
What is the Folio Number in Mutual Funds?
The purchase of mutual fund units leads to a distinctive identification number assigned to an investor called the folio number. This number serves as an essential reference identifier that Asset Management Companies (AMCs) use to hold records of transactions, investment data and client details. Unlike bank account numbers, folio numbers are specific to each AMC.
Distinct folio numbers will be assigned if you invest in multiple mutual funds from different fund houses. Sometimes, certain AMCs offer the facility to combine investor accounts into one unified folio number as a tracking system. So, it is important to know how to check mutual fund status with a folio number for easy tracking of investments.
Advantages of the Folio Number
The folio number is essential for mutual fund investment management because it provides various organisational benefits. These benefits are discussed below in detail:
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Easy Tracking of Investments
You can check mutual fund status with a folio number to monitor the performance of individual or multiple investments. Your unique folio number provides real-time updates about your investments because it is a tracking tool that reports changes in Net Asset Value (NAV) and relevant performance metrics.
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Seamless Portfolio Management
Organising all your investments under one folio number simplifies fund management. So you can monitor long-term asset growth while meeting your short-term financial targets. Additionally, this feature shows all mutual fund assets from separate holdings in one consolidated view.
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Hassle-Free Transactions
Buying and selling mutual funds needs to be executed without any errors. The folio number verifies correct program execution and precise fund distribution between accounts when investors execute unit transactions. This way, the investment decision process becomes error-free through this system, which maintains your full control over your financial decisions.
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Prevention of Errors
The direct connection between the folio number and your investment profile makes it a necessary tool to prevent both incorrect investing and unit tax errors. It offers a straightforward tracking view, ensuring that all processes related to your mutual fund investment are executed correctly.
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Facilitates Tax Documentation
The folio number is an essential tool for producing single tax statements for filing purposes and financial preparations. With this, you will have access to complete records of capital gains, dividend income, and other financial information necessary for tax filings.
Allocation of the Folio Number
To check mutual fund status with folio numbers, investors must send a request to their AMCs to produce this number. The fund house creates and issues a distinct folio number to track each mutual fund scheme investment. AMCs use folio numbers as their official tracking system to monitor investment records and performance data. Investors need to track the folio number because it enables fast access to their investment data.
Every folio number contains information that connects to your Aadhaar, PAN, and other official records for completing KYC. Your transactions are connected to verified accounts through this system, which helps you meet regulatory obligations. Therefore, the folio number serves as an important identification system that keeps your data safe.
Checking Mutual Fund Status Using a Folio Number
Checking your mutual fund status with your folio number can be done through different methods. These methods give investment holders quick access to their mutual fund assets while providing performance updates. So, here are the different ways to check mutual fund status with folio number:
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Through the Asset Management Company (AMC) Website
The easiest way to verify mutual fund status is by using the Asset Management Company (AMC) website. This website enables users to access their accounts via folio numbers together with their PAN number and registered email ID.
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Using the Registrar and Transfer Agents (RTAs) Websites
You can check your investments through the Registrar and Transfer Agents (RTAs) websites. These management systems consolidate investment reports from various Asset Management Companies.
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Via Mobile Apps of AMCs and RTAs
Mutual fund houses and RTAs have mobile app services for investors. These apps allow users to access their portfolio status and investment performance in real-time through their folio number login.
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Checking via Email and SMS
Emails and SMSes allow you to check your investment status. The correct way to retrieve your mutual fund status through SMS is by sending a predefined message consisting of your folio number to the AMC’s contact number.
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Through the Mutual Fund Distributors or Financial Advisors
Financial advisors who distribute mutual fund investments can provide services to check folio statuses. These professionals offer combined reports that provide a complete investment overview, which facilitates portfolio performance examination.
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Using Consolidated Account Statements (CAS)
You can obtain a Consolidated Account Statement (CAS) by requesting it either from National Securities Depository Limited (NSDL) or Central Depository Services Limited (CDSL). The CAS enables PAN number-linked mutual fund ownership verification, showing all your portfolio information and investment data in one document.
Can an Individual Hold Multiple Folio Numbers?
An AMC allows investors to maintain separate folio numbers linked to their overall account structure. Furthermore, different folio numbers create flexibility when investors manage their investments in many typical scenarios.
Multiple folio numbers may be assigned when an investor maintains separate investments through different schemes. Moreover, particular investors maintain different folio numbers because it helps them manage the individual performance of their investment schemes. This way, managing different portfolios becomes easier when each investment has its unique folio number.
The same AMC often sees investment interactions among different family members. Every family member who invests with an AMC will get their folio number to facilitate tax reporting and documentation procedures. In addition, the separation of family finances through different folio numbers facilitates clear tax documentation.
Distributors assign different folio numbers to investors when they invest in mutual funds from their platforms. Various brokers or platforms that purchase mutual funds will assign unique folio numbers to maintain accurate records.
Most AMCs allow customers to combine different folio numbers into a single united reference number. This system simplifies investment tracking and reduces paperwork, allowing investors to manage their portfolios efficiently with a single folio number.
Final Words
Consequently, monitoring mutual fund performance requires investors to understand the process of checking fund statuses using folio numbers. A folio number functions as a distinct identifier to help with transaction monitoring, fund performance evaluation, and financial records access.
The AMC website, RTA platforms, and mobile apps require your folio number for smooth portfolio management. So, if you want to simplify your investment management, you should group all folio numbers from different AMC portfolios.
Having said this, execute your financial management needs with Torus Digital for digital investment portfolio support and management to optimise your financial journey.
