I’m quite new to investing, and I started using Paytm Money to invest in mutual funds since May.
I invested in one fund of SBI back in May, and got assigned a Folio number. Last week, I invested on another fund of SBI, and the statement says that this also correspond to the same Folio number.
My expectation was that Folio number is similar to bank account numbers, and for each new fund (may be even bet Growth/IDCW options), I’ll receive a unique number. Is it not the case?
Is my Folio number expected to be unique per AMC corresponding to my PAN and will remain same for all funds under it?
I checked few of my friends, and interesting they have mixed experiences of both of these situations. So, I got confused and became curious to know what’s expected.
No, this is not the case. You can have different funds under the same folio number, and can have different folio numbers with the same AMC.
No. You can have different folios with the same AMC. I am not sure about PayTM Money, but some other intermediaries give the option of choosing an existing folio or opening a new folio for each purchase.
Thanks for answering. But given your answer, now I’m more confused because having both of the possibilities.
So it makes me wonder about the same question that @RLM asked. Probably it doesn’t matter financially, but is there any other advantages/disadvantages of using one Folio per AMC, multiple Folio per AMC for different schemes and multiple Folios per different purchases?
Just that managing multiple folios becomes a hassle and you’ll have to have a separate nomination etc. But if you’re investing on Coin, folio number doesn’t matter since we offer MF in demat.
If you do goal-based investing, with different amounts going towards different goals, then you can use different folios for each of these goals.
Using different folios is a possible way of getting around the FIFO constraint on redemptions, since the relevant section of IT law talks about different “accounts” or some such (it has been a while since I looked that up), and different folios possibly count as different accounts for this purpose. I am not aware of the legitimacy of this approach being settled by any ruling, though, in one direction or the other.
@Bhuvan
i can transfer / gift / sell ;: shares , ETFs ,debentures etc to my friend demat from my demat . .
BUT , since the mutual funds and folios what i hold , are specifically under my name ; and some under the joint name holding ; then ; how can i sell / transfer / gift ; the mutual funds from my demat to my friend demat ? @rupeshmandal
I believe, folio number won’t matter since MF you hold is in Demat form.
1. Transfer to another CDSL Demat account: If you’re transferring the units to a CDSL Demat account from Coin, this is a simple procedure. You can use CDSL Easiest to get the transfer outdone to another CDSL Demat account. You can read the details here.
2. Transfer to an NSDL Demat account: If you’re transferring the units to an NSDL Demat account, you will have to use the Off-market procedure. For off-market transfer of mutual fund units, you will need to use a DIS (Delivery Instruction Slip). DIS is similar to a bank cheque leaf which is used to move money from one bank account to another. With the DIS, you can move shares from one DEMAT to another.