CONSOLIDATING
FOLIOS
I have too many folios in the
same mutual fund and am unable to manage, maintain and track the same. What
should I do? Most investors fill in a fresh application form even while
investing in the same mutual fund. This leads to creation of multiple folios
(accounts) and investors may find it difficult to maintain and keep records. Mutual
funds and registrars have given investors the option to consolidate all their
folios in the same mutual funds into one single folio. Consolidation is the
merger of two or more folios into one single folio. Consolidating folios into
one would give you the benefit of having to track and transact in one folio and
allow you a single view of your investments in the Fund – all investments in a
Fund would reflect in a single statement. How can I get all my folios in the
mutual fund consolidated into one folio? Investors may submit a simple, signed
request letter to the mutual fund / transfer agent asking for the consolidation
of the multiple folios in the mutual fund into any one of existing folios. The
folio numbers should be mentioned in the letter. Consolidation can be done
subject to the fulfilment of some conditions.
What are these conditions?
Basically the below details
should be uniform in all the folios:
All holders' names – should be in
the same order in all folios
Address
Bank details
Tax status of the investor
Holding nature – Joint or Either
or Survivor
Nominee registered in the folios
Dividend option of the same
scheme should be same i.e. either Re-invest or Payout If the above details are
the same in your folios, the same can be consolidated into one single folio
called the ‘Target folio'. Some mutual funds may have other guidelines and
investors may contact the mutual fund or registrar to get more information on
these details.
What if one of the folios does not meet the criteria?
If any of the folios does not
meet the criteria, the other folios meeting the criteria will be consolidated
and the investor informed. Investors also have the option of giving a request
to change the address, bank details, nominee and dividend options. Once these
match, the consolidation can be effected.
What is the communication after consolidation?
A statement of accounts of the
consolidated (target) folio is sent to investors along with a covering letter. If
the folios are consolidated into one, will a statement reflect all transactions
for all schemes of the folios? Yes. The statement of the ‘target' folio will
contain all the details of all the transactions of schemes in all your previous
folios. If you wish to make a transaction in the same mutual fund in future,
please mention the folio number in future transaction slips and any new
investment will be created in the same folio. – www.thehindubusinessline.com