What is Mutual Fund Redemption & How to Redeem Mutual Funds

Mutual fund statements are a compilation of your mutual fund transactions and contain your folio number (assigned to each new fund you invest in with the same AMC). As it is possible to consolidate different mutual fund schemes you have invested in under a single folio number, your investment tracking process becomes hassle-free and convenient. Capital markets have long been considered an excellent avenue for creating wealth. But this can be risky due to lack of diversification and active management. So, as an alternative, investors choose mutual funds that invest in a basket of equity stocks. Equity mutual funds are bifurcated into three categories based on the market capitalisation of the underlying companies, namely large cap funds, mid cap funds, and small cap funds.

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1. Now imagine, mutual funds as the piggy bank, where the charm of redemption remains the same – though the objective of redemption may have changed.
2. MF statements present a consolidated record of all the investment transactions made through a single folio number.
3. To my surprise last page of confirmation show totally different amount and start date .
4. Mutual funds have evolved from niche products to mainstream options for wealth creation and capital preservation.
5. A folio number also records items such as how much money each investor has placed with the fund, their transaction history, and contact details.
6. It helps track your holdings, transactions (purchases, redemptions), and overall performance within that AMC.

There are no two ways about it that the mutual fund industry in India is growing by leaps and bounds as different kinds of funds cater to all types of investment needs. With an increase in investor awareness about mutual funds, the growth shown by this industry is likely to surpass that achieved so far. For doing all this seamlessly, mutual fund investors need a folio number as a unique identification number. This is not a magic number, but it plays a crucial role in your mutual fund investment decisions by checking your mutual fund status regularly.

Past performance of any scheme of the Mutual fund do not indicate the future performance of the Schemes of the Mutual Fund. BFL shall not be responsible or liable for any loss or shortfall incurred by the investors. There may be other/better alternatives to the investment avenues displayed by BFL.

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The charm of taking out the piggy bank cash was to use it to buy your favourite ice cream, comics or a pack of chocolates! Now imagine, mutual funds as the piggy bank, where the charm of redemption remains the same – though the objective of redemption may have changed. The best time to redeem your mutual fund units is when you meet your investment objectives and achieve your dreams – buying a bike, car, jewellery or going for a vacation. Mutual fund redemption allows investors to withdraw their investment partially or completely from a mutual fund scheme at the prevailing Net Asset Value (NAV). Let us understand how mutual fund redemption is done online or offline in India.

1. Yes, you can use your folio number to withdraw or redeem mutual fund units.
2. The NAV will inter-alia be exposed to Price/Interest Rate Risk and Credit Risk.
3. Capital markets have long been considered an excellent avenue for creating wealth.
4. In simple words, you can use the folio number issued by one AMC to invest in multiple MF schemes offered by that same AMC.
5. In the case of mutual funds, NAV means the market value per unit of the fund.
6. Since all your investments are made through this unique folio number, tracking and managing your investments with the AMC becomes easier.

Your folio number is typically found at the top of your Consolidated Account Statement (CAS) provided periodically by the AMC. It’s also available in the mutual fund account statement for SIPs or lump sum investments. In August 2024, the number of mutual fund folios in India surpassed the 20 crore mark, signalling a strong shift towards investment in mutual funds. This milestone reflects growing investor awareness and the appeal of mutual funds as an accessible, diversified investment vehicle across various demographics.

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In case you still face the same issue, please contact us on We would love to have your feedback on the new update. 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. A folio number can also be used to identify journal entries or parcels of land. Different fund houses and providers sbi mutual fund statement by folio number of similar folio numbers will all use a slightly different method to create a number value.

All mutual fund schemes including open-ended, closed-ended, and interval schemes across equity, debt and hybrid categories have NAVs which are driven by market movements. The mutual fund house or the Asset Management Company (AMC) issues an investor a particular identification number, the folio number, after they have invested in a mutual fund scheme. This distinctive identification number can be used to track different aspects of an investor’s mutual fund account, including the fund’s performance, losses or gains, and more. Furthermore, the AMC uses the folio number to communicate important information to investors.

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They work like regular bank account statements that sum up all the transactions made through a particular bank account. The folio number is an integral part of your mutual fund statement since it acts as a unique identifier for your investments in the fund. MF statements present a consolidated record of all the investment transactions made through a single folio number. Since all your investments are made through this unique folio number, tracking and managing your investments with the AMC becomes easier. Therefore, understanding the significance of an MF folio number is crucial for investors looking to learn how to check mutual fund status. When you make any investment, including a mutual fund investment, it is necessary to keep a check on your investment accounts just as you keep track of your bank account.

However, if you have made investments in multiple funds with the same AMC, you can have a single folio number consolidating all your mutual fund schemes. ”, you may be wondering who allocates the folio number to you after you make a mutual fund investment. You may have already gauged that the folio number is assigned to investors by the Asset Management Company (AMC) or mutual fund house that an investor holds the fund with. A temporary underperformance alone should not trigger redemption if your investment horizon is long enough to ride out volatility. Redeem only if the fund consistently fails to deliver satisfactory returns over an extended period compared to the category average or benchmark.