How to Consolidate your Mutual Fund Portfolio!

In my earlier posting, I had discussed about how to manage your mutual fund investment as we can do so by registering online access to our mutual fund schemes. But if you have several folios in same fund house, so registering for each and every folio is very time consuming, plus its difficult to remember login and passwords of all your folio's.

Like i observed i have 5-6 customer folios in one fund house, and I had created login and passwords for each folio but then it is very time consuming to keep track of all, as i was actually looking for consolidated portfolio, as which help me to get access of all my investment in one customer folio and have one login id and password for the same and that also helps me to buy and sell and don't need to remember user id, password, folio and secret question of each and every login. Finally i was able to do so.

How

In mutual fund, we have option to consolidate our mutual fund schemes (of same fund house) in one customer folio but to apply for consolidation, their should be uniformity in the details like:

• All Holders’ names – should be in the same order in all folios
• Address
• Tax Status of the Investor
• Holding nature – Joint or either or survivor

 If the above details are the same in your folios, the same can be consolidated into one single folio called the ‘Target folio’. Some Mutual Funds may have slightly different guidelines and investors may contact the Mutual Fund or Registrar to get more information on these details. 

   

How to go ahead:
 You can  submit a simple, signed request letter to the Mutual Fund / Transfer Agent asking for the consolidation of the multiple folios in the Mutual Fund into any one of existing folios. The folio numbers should be mentioned in the letter. Consolidation can be done subject to the fulfillment of some conditions.

Format:

 

                                                                                                      Date:                   

To,                                                                   

……………………………………………………

…………………………………………………….

………………………………………………………

Dear Sir,

Subject: Request for consolidation of multiple folios into a single folio

We, …………………………………………………..   and ……………………………………………… are holding investments in certain schemes of ......................... Mutual Fund, under the following folio numbers:

Sl. No.	Folio Number	Scheme Name
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.

We would like to consolidate all our aforesaid folios into a single folio number i.e______________ and would accordingly request you to do the needful in this regard.

Yours Sincerely,

(Name of Investor)

2. How to get  Consolidated  Mutual Fund Portfolio!


Visit here: https://www.camsonline.com/invmailback/ConsAcstmtMBreq.aspx

Investors can now request for a Consolidated Account Statement across his entire holdings in KARVY, CAMS and FTAMIL serviced Mutual Funds. Since there exist other Funds that are not serviced by either KARVY or CAMS or FTAMIL, this will not be an industry consolidation, but it will certainly be a massive step forward for investors. If you have registered an email address in your folios across Funds serviced by KARVY, CAMS and FTAMIL, you can use this to obtain a consolidated PDF Account Statement at your registered email address.

CAMS, Karvy and FTAMIL have individually provided great convenience to investors by allowing them to see a consolidated view of their holdings within the verticals of their respective serviced Funds. Such statements are sent via Mailback, and are well established and accepted by the stakeholder community.

 

Procedure for Transmission - Change in Guardian due to demise of Existing Guardian

In case there is a change in the guardian, the new guardian will have to provide various documents prior to registering, including KYC and bank attestation of his signature of a bank account where he is the registered guardian.

When there is a change in guardian due demise of existing guardian, the following documents should be submitted for registering the new guardian:


1. Request letter from the new guardian

2. Death Certificate of the deceased guardian
Notarized copy or attested copy of the Death Certificate of the deceased guardian, where applicable. The attestation may also be dome by a special executive magistrate, AMC authorised official or manager of a scheduled bank.

3. Bank attestation 
Bank attesting the signature of the new guardian in a bank account of the minor where the new guardian is registered as the guardian.

4. KYC of new Guardian

5.  Proof of Guardianship

The new guardian must be a natural guardian (i.e. father or mother) or a court appointed legal guardian.

AMCs shall mandatorily obtain information on the relationship/status of the guardian as father, mother or legal guardian in the application form.

In case of natural guardian, AMC shall obtain a document evidencing the relationship if the same is not available as part of the documents submitted as per 2.3 below.

•  Date of birth of the minor along with photocopy of supporting documents as enumerated below shall be mandatory while opening the account on behalf of minor
• Birth certificate of the minor, or  School leaving certificate / Mark sheet issued by Higher Secondary Board of respective states, ICSE, CBSE etc., or
• Passport of the minor, or
•  Any other suitable proof evidencing the date of birth of the minor.

  In case of court appointed legal guardian, supporting documentary evidence shall be obtained.

Also refer

Procedure for change in status from minor to major (in mutual fund investment)

Formats:

1. Request Letter (link of Reguest Form in Image File)

***In order to check original Size of image, first click on image and then right click to the view the image of original size...

 

2. Bank attestation letter format (link of Bank attestation format)

 ***In order to check original Size of image, first click on image and then right click on view the image of original size...

 

Link of bank attestation in word document

How Does SIP work in a mutual fund?

As if the Power of Compounding wasn't enough, investing with the help of SIP's also offers you the additional benefit of Rupee Cost Averaging. Simply put- You buy more units at lower prices, and less units at higher prices, without having to track the market every day. 

Example:

This is how SIP works; If the NAV in the first month is Rs 20, and you have invested Rs. 2000 you will get 100 units. Similarly in the next month if the NAV is Rs 25, you will get 80 units. The following month if the NAV is Rs 18, then you will get 111 units. So, after three months, you would have 291 units. This means that investing through SIP helped you pay a lesser price per unit! On an average, you would have paid around only Rs 20.61 per unit.

Starting a SIP in an equity mutual fund allows you to take advantage of investing in equities and also seek diversification. Investing through the SIP route minimizes the effects of investing in volatile markets.

With SIP's you don't even have to worry about when and where to invest or even track daily market movements, as there is a professional fund manager to take care of your investments.

Investing through a SIP significantly reduces the risks attached to market timing. 

 Source: Tata MF SIP Guide

WEF 1st May 2012, Pocedure to followed for Change of Bank Mandate And address in mutual funds in India..

AMFI with view to protect the interest of investors and fraud/risk avoidance and such other operational risks, time to time issues various guidelines to mitigate such risks. 

 These changes are pursuant to the recent circulars issued by SEBI as well as AMFI to mitigate instances of fraud, to reduce operational risks and to protect the interest of investors. This  update is for uniform rules to be followed  for change in bank mandate, and changes in address. These changes would be effective May 1, 2012 .
 

Procedure to be followed for Change in Bank Mandate

1. Updation of Bank Account in Customer’s Folio shall be either through “Multiple Bank Account Registration Form” or a standalone separate “Change of Bank Mandate Form”.

2. In case of standalone change of bank details, documents as entailed below should be submitted as a proof of new bank account details such as proof of old bank account and proof of identity of the clients, for change in bank account.

3. Customers are advised to register multiple bank accounts and choose any of such registered bank accounts for receipt of redemption proceeds.

4. Any unregistered bank account or new bank account  with redemption request shall not be entertained or processed;

5. Any change of Bank Mandate request received/processed few days prior to submission of a redemption request or on the same day as a standalone change request,  will continue to follow cooling period of 10 calendar days for validation of the same.

 

Documents required for change in bank account:

 
Investors are required to submit any one of the following documents in Original or produce originals for verification or copy attested by the Bank -
 

 For New Bank Account Registration 

• Cancelled original cheque of new bank mandate with first unitholder name and bank account number printed on the face of the cheque; OR

• Self - attested copy of bank statement; OR

• Bank Passbook with current entries not older than 3 months; OR

• Letter from the bank on its letterhead confirming the bank account holder with the account details, duly signed by the Branch Manager/authorised personnel.

AND Proof of Identity as prescribed under KYC guidelines alongwith Proof of Investment - only for such investors who have not registered their bank mandate at the time of making investment.

For Change in Existing Bank Mandate

•   Cancelled original cheque with first unitholder name and bank account number printed on the face of the cheque; OR

•  Original bank account statement or pass book; OR

• Original letter issued by the Bank on the letterhead confirming the bank account holder with the account details, duly signed by the Branch Manager; OR- In case such Bank account is already closed, a duly signed and stamped original letter from such bank on the letter head of bank, confirming the closure of said account.

Procedure to be followed for Change in Address

 
Investors / unitholders are requested to note that from the effective date, self- attested copies of the below mentioned documents shall be submitted along
with a duly filled in 'Change of Address Form".

1. KYC not complied folios:

• Proof of new Address

• Proof of Identity (in case of PAN updated folios - only PAN card copy shall be accepted, and in other case PAN/other valid proof of identity shall be accepted)

• Based on AMC's  internal risk assessment, AMC may also consider collecting proof of old address, while effecting change of address

2. KYC complied folios: 

•  Proof of new Address

• Any other document/form that the KYC Registration Agency (KRA) may specify from time to time.

Copies of all documents submitted by the Investors should be self-attested and accompanied by originals for verification. 

In case the original of any document is not produced for verification, then the copies should be properly attested/ verified by entities authorised for attesting / verification of the documents as per KYC guidelines.

Forms 

  Multiple Bank account Registration form cams

         

   Multiple Bank account Registration form karvy

Form for HDFC Mutual Fund

Form for Franklin Templeton Investments

 Form for Reliance Mutual fund

 Form for SBI Mutual Fund

Tax implication on Gold ETF, Gold FOF, E-gold and gold in physical form

Tax implication on Gold ETF, Gold Fund of Fund,  E-gold and gold in physical form

Tax implication on Gold Fund of fund and Gold ETF

 The Gold ETF or Gold Fund of Fund (gold savings fund which invest in gold etf) is classified under mutual fund and will be taxed as per non equity mutual fund taxation rules. 
  

Gains from Gold ETF will have the same treatment as Debt MFs.

Investor investing in Gold ETF need not pay wealth tax. 

 Long Term Capital Gains - if held for more than a year

LTCG of Gold ETFs and gold FoFs are taxed at 10% without indexation and 20% with indexation which ever is lower.

 Short Term Capital Gains - if held for less than one year

 STCG and taxed as per individual income tax slabs.

Investor has to pay taxes after redemption as per the tax laws applicable for non equity mutual fund. But, when the Gold ETF is redeemed for physical gold the taxation rules will be similar to that of physical gold.

Tax implication on e-gold

The e-Gold units will be treated as Gold for tax purposes. The units should be held for more than 36 months for availing the confessional tax treatment accorded to long term capital gains and for exemption eligibility under Section 54 F or 54 EC of Income Tax Act, 1956

You also need to factor in wealth tax implications. Gold and silver bars and coins as well as jewellery are liable to wealth tax.  You will  have to pay wealth tax on the market value of the electronic units lying in your account as on March 31 of each year, if the total value of your taxable wealth together with market value of e-Gold exceeds Rs 30 lakh.

The tax payable being 1% of the market value of the assets exceeding Rs. 30 lakh. Such tax is payable each year on the assets so held as on 31 March of that year.

 

Also refer

Tax implications on Fixed Maturity Plans
Tax Implications on mutual Fund Gains