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How do I consolidate holdings across MF schemes in multiple folios into a single folio?

edited April 2013 in General
AMCs allow (and encourage) investors to consolidate holdings across schemes in multiple folios into a single folio.
This is a non-financial transaction where-in only the folio number of the scheme changes and units are transferred from one folio to another. 

You can use the merger option in mutual fund to consolidate folios.

For e.g. if you have two folios 
HDFC Top 200 Folio no. 111 
01-01-2013 Units purchased 100 @ 120 = Amount 12000

HDFC Top 200 Folio no. 222
Purchase date: 01-07-2010, Units purchased 200 @ 50 = 10,000

Suppose you want to consolidate both the folios into folio no.111, right click the scheme with folio no.222 and select ‘Other Transactions->Merger Details’ and enter the effective date of merger (this date will not have any effect on taxation) and show the balance quantity after merger, as same units as 200.

After this transactions, you will see all the units transferred to folio no.111

Now, suppose you sell all the 300 units of folio no.111, the capital gains will show the long term capital gains for 200 units (which were originally purchased in 2010 as folio no.222) and 100 units of folio 111 will be treated as short term capital gains.

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