A
recent exercise in allocating common account numbers (CANs) to Mutual fund
investors with multiple folios has thrown up interesting results.
A
total of 90,000 folios processed revealed only 15,000 unique PAN numbers,
according to data from MF Utilities (MFU), a common sector platform from
Association of Mutual Funds in India (AMFI).
This
suggests, on average, every individual investor has at least six folios.
The total number of MF folios is about 4.24
crore (42.39 million). Applying the ratio of 1:6 would peg the actual number of
unique investors at about 70 Lac.
Conventional
wisdom had pegged the ratio of duplication at four folios per unique investor
MFU,
brainchild of the AMFI has created a common platform for MF transactions. It
has begun to enroll investors by giving each a CAN.
Mr.
Dhirendra Kumar, CEO, Value Research, said,
“There are a number of reasons investors put their money in through different
folios. New systematic investment plans (SIPs) are often started under a
different folio. There are times when the folio number is not handy when one is
investing in a tax-saving scheme and the investment deadline is drawing near”
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