Your folio number is similar to your bank account number at the Mutual Fund Company. Just like you could hold many accounts at the same bank, you can hold multiple folios at the same Mutual Fund.
At Clearfunds, we create separate folios for each scheme you purchase at the Mutual Fund Company. There are two reasons for this:
- When we purchase investments for you in a PORTFOLIO, we could be buying with the same scheme that you have already purchased in your Personal Portfolio. It then becomes really hard to track and split out portfolio performance and keeping these two investments in separate folios is a convenient way to track them.
- The Mutual Funds only allow you to hold Dividend Payout OR Dividend Reinvestment of a single scheme in a single folio. If you already hold a Dividend Reinvestment scheme, and subsequently purchase Dividend Payout of the same scheme, the original investment gets flipped into Dividend Reinvestment (which is not your intention). In order to avoid this, we purchase each scheme & payout combo in a separate folio.
We realize that this could be inconvenient for those tracking their investments on a folio basis, but your Clearfunds dashboard has all your investments in one convenient view.