How to Create a New Mutual Fund Folio

1

What is a folio?

A folio is a unique account number within a mutual fund - think of it as a separate bucket. Every mutual fund creates its own folio for you when you invest, and you can have multiple folios within the same fund. For example, if you invest in HDFC Flexi Cap twice at different times and choose "New Folio" the second time, you'll have two separate buckets in the same fund - each with its own units, its own purchase history, and its own FIFO queue.

Full video: FIFO, folios, and the three-stage tax strategy · FinWiseOwl

2

KYC check - do this first

Creating a new folio requires your KYC to be validated. If your status is "On Hold" or mismatched, the transaction will fail or get stuck. Check this before you try anything below.

✓ Validated

All clear

PAN and Aadhaar confirmed by the issuing authority. You can open new folios, invest with any AMC, and transact freely.

⚠ On Hold

Blocked

Since April 2024, investors on hold cannot invest in new AMCs, open new folios, or redeem in some cases. Fix this first.

~ Registered

Partially OK

Can invest with AMCs where you already have folios. Opening a new folio at a new AMC may fail. Getting validated is safer.

✗ Not Done

Nothing will work

Complete KYC first. You'll need your PAN, Aadhaar, and a selfie. Do it via CAMS, KFintech, CVL, or NDML KRA.

How to check your KYC status

CAMS: Go directly to camsonline.com/Investors/Transactions/KYC/KYC-Status → enter your PAN → your status (Validated / Registered / On Hold) will display instantly.

KFintech: Go to mfs.kfintech.com/investor/general/pankycvalidate → enter PAN + captcha → submit.

CAMS KRA: Also available at camskra.com - this is the KYC Registration Agency portal, the authoritative source for your KYC record.

Common issue - PAN-Aadhaar name mismatch

If the name on your PAN and Aadhaar don't match exactly (e.g. initials vs. full name, or a middle name missing), your KYC may show as "On Hold" even after completing it years ago. You'll need to re-KYC with updated documents. Write to enq_kyc@camskra.com if you're stuck.

3

How to create a new folio - by platform

The steps differ by platform. Find yours below.

CAMS

myCAMS App

For funds serviced by CAMS - HDFC, Nippon, Kotak, SBI, DSP, and more

Episode 3 - How to create a new folio on CAMS · FinWiseOwl

Open the myCAMS app
Login using email ID + mobile number (OTP-based)
Go to Transact → Select Investor
Choose New Folio
Continue with the purchase - select AMC, scheme, bank account, nominee → pay
A new folio number is assigned automatically. Holdings will appear separately from your existing folio in the same fund.

Note: You'll receive the new folio number by email/SMS after the transaction processes, typically the same day or next business day.

KFintech

KFintech App

For funds serviced by KFintech - Axis, Franklin, Mirae, ICICI Pru, and more

Open the KFintech app
Go to Transact → NFO & New Purchase
Select the fund you want to invest in
When prompted: "Same folio or New folio?" → choose New Folio
Select scheme → proceed → pay → done

Tip: KFintech asks you explicitly at the transaction stage - no hunting through settings needed.

Third-party apps

Groww, ET Money & Others

MFU-based aggregator platforms

These apps generally don't offer a direct "New Folio" option - they route transactions through a single combined folio automatically
Safest workaround: create the folio directly via CAMS or KFintech (steps above), then continue tracking in Groww or ET Money as usual
Your holdings will sync once the folio is created at the RTA level - typically within a day or two

Have you found a way? If you've successfully created a new folio inside Groww, ET Money, or another app - drop it in the comments on YouTube or Instagram. We'll update this guide.

4

Frequently asked questions

Can I have multiple folios in the same fund?

Yes - and that's precisely the point. You can have a 2018 folio and a 2024 folio for the exact same scheme (e.g. HDFC Flexi Cap), each with their own unit history and FIFO queue. SEBI places no limit on the number of folios per fund.

Does the same folio number work across different funds?

No. Each mutual fund creates its own folio number for you. HDFC Flexi Cap and HDFC Balanced Advantage, even though they're the same AMC, will have separate folios. A folio is fund-specific.

Do I need to re-submit KYC for each new folio?

No. KYC is PAN-linked, not folio-linked. Once your KYC is validated, it applies to all folios across all funds. You won't need to redo it for a new folio.

Can I move units from one folio to another?

No - direct unit transfers between folios aren't possible. You'd have to redeem from one and reinvest in the other, which is a taxable event. The lesson: plan your folio structure before you invest, not after.

Will a new folio show up in my Groww / ET Money account?

Yes, if it's linked to the same PAN. Most aggregator apps pick up folios automatically via the Consolidated Account Statement (CAS) from CAMS/KFintech. It may take a day or two to reflect.

Is there a cost to creating a new folio?

No. Folio creation itself is free. You only pay the costs associated with the underlying investment - which for direct plans is typically zero.

How often should I be creating new folios?

The ideal is to open a new folio every time you step up your SIP - so each year's investment sits in its own bucket with its own cost basis. If that feels like too much overhead, every two years is a practical middle ground that still gives you meaningful control over which gains you trigger at redemption time.