Answer transcript: Having multiple folios is an operational aspect of investing in mutual funds. There might have been a small advantage in the past - if you buy into a fund in more than one folio and you have gains in some folios and losses in others, you can choose which ones to sell depending on their tax efficiency. If your investments are in a single folio, the principle used for taxation is first in - first out. The units you have bought first are considered to be sold first from a tax point of view.
If you have held your investments for more than one year, it is not relevant. Investing in equities should anyway be a long term endeavour and it is therefore advisable to prune your folios. However, you do not need to conduct any transactions to do this. For administrative convenience, MFs give you a facility where all your folios are consolidated in a master folio. Alternatively, if you open an account with MF Utilities (which is free), you can tag all your folios across fund companies giving you a unified view. The risk of losing an investment because you have lost track of it, can thus be eliminated.