Table of Contents
Can a mutual fund company run away with my money?
No one will run away with your money Why do we say this? As mutual fund companies are regulated and supervised by regulatory agencies such as the Securities and Exchange Board of India (SEBI) and the Association of Mutual Funds in India (AMFI), no fund house can abscond with the investor’s money.
Can brokers run away with money?
Practically speaking, nothing will happen to your stocks or shares if your stockbroker goes bust in India. Unfortunately, the concern is all about your trading account and not your shares and stocks.
Can mutual fund steal money?
The answer is no. The reason why your AMC can’t swindle—or run away—with your money is that the mutual fund is a trust. If it decides to wind up any scheme, it will return the money from the scheme to investors at the prevailing price (net asset value).
What happens if mutual fund broker closes?
In the case of a Mutual Fund company shutting down, either the trustees of the fund have to approach SEBI for approval to close or SEBI by itself can direct a fund to shut. In such cases, all investors are returned their funds based on the last available net asset value, before winding up.
What can brokers not do?
There are obvious things a broker should avoid: lying, misrepresenting, and hard-sell tactics. However, some unethical behavior is more subtle but no more acceptable.
What happens if Broker runs away?
When Stockbroker Goes Out Of Business… If your stock market broker goes bust in India, practically speaking, nothing happens to your stocks and shares. To remain a stockbroker there is a huge entrance cost which needs to be paid, strict disclosures at the discretion of SEBI, regular audits and inspection.
What happens if my broker fails?
If your stock market broker goes bust in India, practically speaking, nothing happens to your stocks and shares. The stockbroking industry is very well under regulations and compliances laid down by SEBI. Unfortunately, the concern is your trading account and not your shares and stocks.
Should you invest in mutual funds based on tips from brokers?
When you buy a mutual fund, your money is invested across a basket of well-chosen stocks. You can be sure the fund manager and his team have researched the stocks threadbare before including them in the portfolio. Investing on the basis of tips from your broker is a different ball game.
Can mutual funds go bankrupt?
Please recognise the difference between possibility and probability! Can mutual funds go bankrupt? Any business can go bankrupt. this means that their expenses and debt are so high and profits so low that they cannot continue any more. The point to understand is that they cannot go bankrupt with our money!
What happens when a mutual fund company loses money?
When a fund house repeatedly makes losses (this has nothing to do with the performance of their mutual funds), it will simply sell the business to someone else (willing to buy) or inform the investors that the fund is to be closed and return their money = current value of units held. Are mutual funds safe?
Why are some mutual funds closed to new investors?
Some are higher, and not all funds set any minimum. You also may notice that some mutual funds are closed to new investors. The more popular funds attract so much investor money that they get unwieldy, and the company that manages them makes the decision to stop enrolling new investors.