Folio Consolidation

Nirmal: Hey Sharmila, good morning. Surprised to see you with a bunch of letters in your hand? Are these all dividend payouts and are you going to be richer?

Sharmila: Nirmal, I wish that would be true soon. But currently I am going dizzy with the whole lot of mutual fund account statements that I have got in my home. All these belong to various investments I have made over a period of time. Don’t know how to simplify this hassle?

Nirmal: Yes, there is a simple way out Sharmila.

Sharmila: Thank you my mentor. What is it by the way?

Nirmal: The process is called folio consolidation.

Sharmila: How do I do that?

Nirmal: All you have to do is to send an instruction to your registrar like CAMS or your mutual fund requesting them to consolidate all your folios.

Sharmila: Wow, that sounds simple. Are there any specific aspects I need to adhere to?

Nirmal: Yes. All your folios, within a mutual fund can be asked to be consolidated. You also need to mention one folio as the target folio and the rest as source folios. Please remember that the folios shall be in the same order of holding.

Sharmila: What do you mean by same order of holding?

Nirmal: For example, if you and your husband are the first and second holders respectively in any folio, all the folios that you seek to consolidate, shall also be in the same order of holding.

Sharmila: Nirmal, I have a bigger issue. I am not sure If I have a track of all the folios where I have invested.

Nirmal: That’s not at all a problem Sharmila. CAMS can help you with that. All you need to do is to provide written request quoting your PAN for CAMS to locate your folios and confirm. Thereafter you can provide a separate written request to consolidate your folios.

Sharmila:  What happens to the nominations that I have registered in my other folios?

Nirmal: All your Nominations will remain intact, as long as the nominee names and percentage of share are same across all folios.

Sharmila: Okay. That’s cool. Do I have to register Bank mandates in the new folios?

Nirmal: That’s a good question Sharmila. But you need not worry about this. Your target folios bank mandate will remain in your folio for all your future payouts. Only one thing for you to remember Sharmila. If you had pledged any of your mutual fund units with any bank or financier, you will not be allowed to consolidate that folio, until the loan is settled.

Sharmila: Thank god, I have my Mutual Fund Guru.

Nirmal: Oh… I am not the guru. I understood everything from CAMS…You can understand all about mutual fund service related information from www.camsonline.com

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Published by

Sudarshan Ranganthan

Breaths Investments, Suggests Wealth Creation Ideas, Lives on Law Of Attraction

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