What Are Folio Numbers?

Mar 29, 2023 By Rick Novak

What Is a Folio Number? Each share of stock or another financial instrument an investor owns is given a unique number called a folio number. Financial institutions can better manage their client's investments with the support of this essential part of a diversified portfolio. A folio number is a unique identifier given to each investor who acquires a security such as a mutual fund. The investor's securities purchases and sales, investment redemptions, account statements, tax benefits, and fund transfers are all recorded using this number by the financial institution.

By assigning a unique folio number to each investor's holdings, the administration of those holdings is simplified and improved. From this report, investors can learn everything they need to know about their assets, deals, and tax breaks. With this information, banks and other financial institutions can better serve their customers and oversee their investments. The folio number is an essential part of the financial industry, and its use guarantees the proper administration of investors' funds.

How Do You Give A Folio Number?

A folio number is a unique identification number given to an investment by a financial organization. A folio number is a unique identifier assigned to an investor by a financial institution when they purchase a mutual fund or another financial instrument. When an investor submits an application form, they are typically given a folio number. Name, address, phone number, and additional identifying information about the investor are included in the application form. When an investor's application is approved, the financial institution will provide them a folio number and present them with the relevant paperwork, such as an account statement.

Types Of Folio Numbers:

Generally speaking, folio numbers fall into two categories:

Individual Folio Number:

A unique folio number tracks each investor's shares in a mutual fund or securities. It's different for every investor and stays the same regardless of how much money an investor puts into a fund.

Joint Folio Number:

When two or more people invest in a mutual fund or another financial instrument together, they are given a single folio number. It is specific to the investor group and will not change for any of its future investments in that fund.

Purpose Of Folio Number:

Investors use folio numbers to track their positions in various securities and funds. It enables banks and other financial institutions to monitor client accounts and report relevant data to their clients. A further benefit of the folio number is its role in expediting the investment process and eliminating paperwork. Financial institutions can better manage their client's assets, and individual investors can more easily monitor their portfolios. The folio number also serves another role, ensuring that the investor is eligible for any tax breaks related to their assets. Financial institutions use the folio number to offer investors tax information, such as the amount to be paid and any tax benefits linked with their investments.

Folio Number: How Is It Used?

The folio number has multiple purposes in the banking and finance sector. A few of the most typical applications are as follows:

Purchasing And Selling Securities

An investor's folio number is required whenever conducting a securities transaction with a financial institution. To complete the transaction, the financial institution needs to be able to identify the investor's holdings, and the folio number does just that. To buy more shares of a mutual fund in which one already has an investment, for instance, one would need to present one's folio number to the relevant financial institution. The financial institution could verify the customer's identity and complete the transaction.

Redemption Of Investment:

You'll need to give the bank your folio number to get your money back from an investment. The folio number identifies the investor's holdings so the bank can fulfill the redemption request. For instance, the investor must furnish the financial institution with the folio number to get the money out of a mutual fund. The financial institution might verify the customer's identity before fulfilling the redemption request.

Statement Of Account:

Investors receive statements of account from financial institutions regularly that show the balances of their investments and the transactions that have taken place. The folio number tracks the investor's holdings and commerce in the account statement. For instance, if you invest in a mutual fund, you will receive a notification of an account that lists your holdings, transactions, and other relevant information. The folio number references the investor's holdings and trades on the account statement.


Each share of stock or another financial instrument an investor owns is given a unique number called a folio number. With it, you can only have a successful investment portfolio; it helps you keep track of your money and ensure it's going where it should. When a client applies to invest with a financial institution, the client is also given a folio number. Essential for purchasing and selling stocks, redeeming investments, keeping track of accounts, receiving tax benefits, and transferring money, an investor's identification number is used to track their holdings and transactions.

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