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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.
This article was originally published on May 23, 2017.
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