How to add multiple bank details to your existing folio?

Managing your mutual fund investments wisely is crucial for financial prosperity. A fairly common question among new investors is – “can we add two accounts in one mutual fund portfolio?” The simple answer to this query is – Yes. Adding multiple bank accounts to your existing folio provides the convenience and flexibility to optimise your mutual fund experience.

This article will help you understand the benefits of adding multiple bank accounts, the steps involved, and answer some common questions.

• Table of contents

1. How to add bank account to your mutual fund portfolio
2. Why add multiple bank accounts in mutual fund folio?
3. How to update bank details in an existing folio

How to add bank account to your mutual funds portfolio

You can add a bank account to your mutual fund portfolio through a few quick and easy steps. The process is as follows:

1. Choose the AMC (Asset Management Company): Each AMC has its own process for adding bank accounts. Locate your AMC's website or visit their nearest branch for specific instructions.

2. Download the form: Look for the ‘Multiple Bank Account Registration Form’ or similar documents on the AMC website. Download and print the form.

3. Fill in the details: Accurately complete the form with your folio number, PAN number, bank account details (account number, IFSC code), and signature.

4. Attach documents: Depending on the AMC, you may need to provide a canceled cheque from each new bank account and a self-attested copy of government-issued ID proof.

5. Confirm the addition: Review the entered information and confirm the addition of the new bank account to your mutual fund folio.

6. Submit the form: Submit the completed form and documents to the AMC either in person at a branch or through email (check the AMC's website for preferred delivery methods).

7. Verification and processing: The AMC will verify your details and process your request. Expect confirmation within 7-10 working days.

Why add multiple bank accounts in mutual funds folio?

Streamlining your investment portfolio is a crucial aspect of achieving your financial goals. For mutual fund investors, the ability to add multiple bank details to an existing folio offers enhanced flexibility and convenience.

• Convenience in transactions: Imagine seamlessly choosing the most convenient account for each transaction, depending on funds availability. With multiple accounts linked, you're not restricted to just one source.

• Flexibility: Diversify your financial flow – allocate income from different jobs or accounts to specific mutual funds, enabling targeted investments for various goals.

• Enhanced liquidity management: Adding multiple bank accounts allows you to manage your liquidity more efficiently. You can allocate specific funds to different accounts based on your financial goals, such as emergency savings, short-term expenses, or long-term investments.

• Streamlined budgeting: Separate accounts for different purposes, like recurring investments or occasional top-ups, can enhance budget control and financial awareness.

• Faster transactions: Certain banks may offer quicker processing times for mutual funds transactions. Having options allows you to leverage the efficiency of your preferred bank for each investment.

• Risk mitigation: Diversifying your linked bank accounts adds a layer of risk mitigation. In case one bank faces technical issues or other challenges, you can still execute transactions through an alternative account.

• Peace of mind: In case of unforeseen circumstances, like a lost or blocked account, you can still invest or redeem units without disruption, thanks to having backup options.

Read Also: What is OTM in Mutual Funds: All you need to know

How to update bank details in an existing folio?

You can update details of your bank account in an existing folio online or offline.
For the online method, you can check if the mutual fund company you have invested in has this provision or else visit the official website of a registrar and transfer agent (RTA). Look for the option to update bank details. You will need to provide the new bank account details and upload a cancelled cheque with the new bank account details.

You may also be asked to provide more details. For the offline process, you will need to download the relevant bank details change from the mutual fund house or RTA’s website or get it in-person from their office. You may need to fill out the form with your folio number and old as well as new bank details. You may also need to attach a cancelled cheque from the new bank account and submit the form in person or via post.

Conclusion

Keep your contact information and email address updated with your AMC to ensure timely communication regarding your folio and any changes in bank account details. On changes in bank account, investor needs to be aware to submit proper documents and there is no fraud happening in the account owing to change in bank account. In conclusion, adding multiple bank accounts to your mutual funds folio is a simple yet powerful way to streamline your investment experience. By taking advantage of this flexibility, you can optimise your financial management and create a seamless path towards your investment goals. You can enhance this experience even further by using an SIP mutual fund calculator to estimate potential returns and make well-informed investment decisions. If you're considering a lumpsum investment, you can use a daily compound interest calculator to estimate potential returns on a one-time investment.If you're planning a one-time investment, you can similarly use a lumpsum mutual fund calculator to enhance your planning process. So, why wait? Diversify your finances and enjoy the convenience of multiple bank accounts in your mutual funds folio today!

FAQs

Is there a limit to the number of bank accounts I can add to my mutual funds portfolio?

The limit on the number of linked bank accounts can vary among fund houses. Generally, investors can add multiple accounts, but it's advisable to check the specific policies of your chosen fund house. For non-individuals, corporate can add up to 10 banks and for Individuals, investor can add up to 5 banks

Can I choose a default account for transactions?

Yes, in the case of multiple banks, it is mandatory to mention the default bank. Most AMCs allow you to set up a preferred bank account for automatic investments or redemptions. You can usually change this default through the AMC's online portal or by submitting another form.

Are there any fees for adding multiple bank accounts in Mutual Fund Folio?

Generally, no additional fees are levied for registering multiple bank accounts. However, certain transactions like redemptions may incur standard charges depending on your investment plan and AMC.

How long does it take for a new bank account to be linked to my mutual funds folio?

The processing time for adding a new bank account to your mutual funds folio can vary. In most cases, it takes a few business days. Ensure that you initiate the process well in advance if you plan to use the new account for time-sensitive transactions.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
This document should not be treated as endorsement of the views/opinions or as investment advice. This document should not be construed as a research report or a recommendation to buy or sell any security. This document is for information purpose only and should not be construed as a promise on minimum returns or safeguard of capital. This document alone is not sufficient and should not be used for the development or implementation of an investment strategy. The recipient should note and understand that the information provided above may not contain all the material aspects relevant for making an investment decision. Investors are advised to consult their own investment advisor before making any investment decision in light of their risk appetite, investment goals and horizon. This information is subject to change without any prior notice.