What Is a Folio Number?
In mutual funds, a folio number is a unique number identifying your account with the fund. Like a bank account number, the folio number can be used as a way to uniquely identify fund investors. A folio number also records items such as how much money each investor has placed with the fund, their transaction history, and contact details.
A folio number can also be used to identify journal entries or parcels of land. Different fund houses and providers of similar folio numbers will all use a slightly different method to create a number value.
Key Takeaways
- A folio number is a unique identifier used to keep track of investments or pieces of property.
- Lawyers, bank creditors, and investors will often all use folio numbers in their businesses.
- Mutual funds use folio numbers to identify account holders in their investment pool.
Understanding Folio Numbers
The word "folio" (leaf in Latin) can mean either a single sheet of paper, or the page number printed on a single sheet of paper to identify its proper location in a larger tome. In accounting, the folio number is a way to reference a bookkeeping entry, most often numbered in chronological or sequential order. By referencing an entry's folio number, its details can be found and analyzed.
All mutual funds need some sort of record-keeping system in place. This information is necessary for ensuring each investor is returned the money they are entitled to, and for determining what fee structure applies to each investor.
While record-keeping is most often facilitated by the broker, in some cases an investor may be asked for a folio number by the fund provider to help ensure accuracy. This folio number may be present on investment statements or may be obtained through your broker. You can make numerous or multiple purchases using one folio number, but the purchases must be in the mutual fund when using the same digits.
Folio numbers are useful to bank creditors, lawyers,and regulators—their utility extends beyond just mutual funds and their unitholders. For instance, in the case of suspected fraud, investigators will reference folio numbers as they construct an audit trail to trace where certain funds or assets have flown in or out, identifying new folio numbers along the way. Folio numbers are also useful in catching duplicated ledger entries and ensuring the accuracy and fidelity of a company's financial statements.
A folio number is a unique number to identify accounts with a mutual fund, and you can get your folio number from your investment statements or through a broker.
Special Considerations
An investor can have multiple folio numbers kept with the same mutual fund company, but they can ask the fund company to consolidate them into a single number. This can help investors when it comes to their own personal accounting and for tax reporting purposes.
Note that the increase in electronic record-keeping further necessitates the need for effective digital tracking options, but also minimizes mistakes and allows for easier reconciliation of multiple entries.
FAQs
Folio number meaning unique identification number provided by mutual fund institutions to their investors in order to track their assets in a certain scheme. It is a mix of letters and digits that aids in the keeping of individual investor data.
What is the example of folio number? ›
You dont need to worry about getting a folio number, as it is automatically assigned to you when you purchase a mutual fund. Example: Folio number looks something like 2189379. Sometime investors keep buying mutual funds with different folio number. You can request AMC to consolidate all you holdings in a single folio.
What does folio mean in real estate? ›
A folio is an official document, which contains a brief description of the registered property and also details of its ownership and any other matters which affect it such as rights of way, mortgages etc.
What is the folio column used for? ›
Folio column: This is posting reference column. It contains the ledger page or code number of the account into which the journal entry has been transferred or posted. This column is left blank at the time of journalizing and is filled in only when the posting is done from the journal to the ledger accounts.
How do I find my folio number? ›
There are various areas from which you can know your folio number. This number is in the top corner of a CAS or consolidated account statement e-mailed by respective fund houses periodically, or you can call their helpline number and get the information about it.
What is the difference between folio number and page number? ›
Page numbers are known as folios.
In a book, it is the number of each page. A single page or leaf (one-half of a folded sheet of paper) that is numbered only on the front side is also a folio. In a newspaper, the folio is made up of the page number plus the date and name of the newspaper.
Can we get details from folio number? ›
Investors can easily get a complete list of units invested in a particular AMC instantly by using this folio number as a reference point. It is quick and simple way to check. The asset management company or AMC is able to make a credible record system of its investors by identifying them with the unique folio number.
What is the other name of folio? ›
What is another word for folio?
| page | sheet |
|---|
| recto | verso |
| surface | piece of paper |
| sheet of paper | flyleaf |
| paper | |
1 more rowLedger Folio is a page number of an account in ledger that is written in L.F. column of a journal format in journal entry. Ledger folio number is written corresponding to the name of the account in the L.F.
Why is a folio number important? ›
Key Takeaways. A folio number is a unique identifier used to keep track of investments or pieces of property. Lawyers, bank creditors, and investors will often all use folio numbers in their businesses. Mutual funds use folio numbers to identify account holders in their investment pool.
It is important to keep your Folio Number safe and confidential as it is required for making any transactions related to your mutual fund investment.
What does portfolio mean in property? ›
What Is A Real Estate Portfolio? Put simply, a real estate portfolio is a collection of real estate investment assets and/or a comprehensive document that details your past and present real estate investment assets. You can think of it as very similar to a resume.
What does a folio contain? ›
The word folio means "leaf or sheet of paper" in Latin. A folio is made by folding one piece of paper in half — counting each side, this gives you four pages. A larger folio is simply a collection of many folded sheets bound together.
What are the contents of a folio? ›
A folio (from Latin foliō, abl. of folium, leaf) is a book or pamphlet made up of one or more full sheets of paper, on each sheet of which four pages of text are printed, two on each side; each sheet is then folded one time to produce two leaves.
What is folio number in UTI? ›
If one has ever invested in mutual funds, the folio number is the address where the mutual fund units are housed. A folio number is to mutual funds, what bank account number is to bank.
What is the ledger folio number? ›
Ledger Folio is the page number of the ledger account on which the relevant account appears. All entries from the journal are posted in the ledger accounts. This page number or the folio number of the ledger account, where the posting has been made, is recorded in the L.F. column of the journal.
