If you are invested in multiple schemes of the same fund house, you can consolidate all folios into one instead of keeping track of each scheme separately.
What is a folio?
For every scheme you invest into, you are allotted a different account number even within the same fund house. A folio works as an umbrella which consolidates all investments made under different accounts into a single platform. But within a fund house, you may have different folios, if you have invested in different schemes through different channels or agents. Every channel will have a folio for the schemes you invest into within a fund house.
Why you should consolidate?
By consolidating folios, you receive a common account statement for all schemes you hold within the same fund house even if they are bought from different channels. This means you can get the address, bank mandate or nomination changed across all schemes in a single fund house through a single instruction.
Consolidation also makes tax reconciliation easier.
How to consolidate
Write a letter to your fund house, requesting consolidation. Make sure the folios that you seek to consolidate have the same set—and also the sequence—of investors. If the fund house already has your PAN card, then submitting those details again isn’t needed. Once the fund house approves your request, it’ll send an acknowledgement.
If you have invested online in some schemes, you first need to convert the folios into the offline mode. Also, if you have systematic investment plans (SIP) running in a folio, there could be a problem. Various fund houses treat transfer of such folios differently. While some disallow transfer of such a folio, others discontinue the SIP after the transfer. Still others continue the SIP even after the transfer. A solution could be to stop the SIP, consolidate the folios and restart the SIP once that is done.
When you can’t consolidate
If you have bought units of the same scheme through different distributors, consolidation is not possible. In this case, you need to bring all your investments either in the “direct” mode (no distributor involved for future purpose) or under one single distributor.