..........will we get back all our money invested/principal amount invested in them ?

#1
I have some questions (you may think it has crazy questions) are as fallows:-
1.If we invest in private insurance companies and private mutual fund companies in any policies offered by them, if in future that private company closes down permanently and stopped all its operations, will we get back all our money invested/premiums/principal amount invested in them ?

2.If we invest in private banks in any accounts or fixed deposits offered by them, if in future that private bank closes down permanently and stopped all its operations, will we get back all our money invested/principal amount invested in them ?

Thanks
 
#2
Re: ..........will we get back all our money invested/principal amount invested in th

I have some questions (you may think it has crazy questions) are as fallows:-
1.If we invest in private insurance companies and private mutual fund companies in any policies offered by them, if in future that private company closes down permanently and stopped all its operations, will we get back all our money invested/premiums/principal amount invested in them ?

2.If we invest in private banks in any accounts or fixed deposits offered by them, if in future that private bank closes down permanently and stopped all its operations, will we get back all our money invested/principal amount invested in them ?

Thanks
1) The Insurance Regulatory Authority ensures that the insurance company has some minimum networth...and if it closes down, some other company takes over and the policies are continued. But there is no guarantee of amount invested. It might sink totally.

2) Private banks have insurance cover of Rs 1 Lakh per depositor. These banks can ( and they do ) go in bankruptcy and investors can loose their deposits. Government does not guarantee any repayment.

Smart_trade
 

DSM

Well-Known Member
#3
Re: ..........will we get back all our money invested/principal amount invested in th

If you have doubts, invest in Govt. banks and schemes.

Though Indian banks and funds are relatively well regulated, there are many instances of fraud and cheating investor - especially in co-operative banks, some of which are floated by/supporters of powerful politicians, with the sole aim of diverting money to their private enterprises.

A famous case is during Harshad Mehta scam is of an unlucky investor, (who in 1992) made a profit of over a crore of rupees in his portfolio. Fearing a market meltdown and wanting to play safe, he liquidated his stock holdings and deposited the cheque received with Bank of Karad. This bank was however caught up in the scam and was liquidated and he lost most of the gains he had encashed.

Even if there are private companies or public limited companies that give a higher return, these are to be avoided unless one can do due diligence. Helios and Matheson Information Technology Limited is a nice english sounding name. But as my cousin found out the hard way, it does not guarantee safety of principal. Drawn in by the bait of higher return, forget the interest, even his principal is now at risk.

So be careful and do due diligence before investing....

I have some questions (you may think it has crazy questions) are as fallows:-
1.If we invest in private insurance companies and private mutual fund companies in any policies offered by them, if in future that private company closes down permanently and stopped all its operations, will we get back all our money invested/premiums/principal amount invested in them ?

2.If we invest in private banks in any accounts or fixed deposits offered by them, if in future that private bank closes down permanently and stopped all its operations, will we get back all our money invested/principal amount invested in them ?

Thanks
 

Catch22

Well-Known Member
#4
Re: ..........will we get back all our money invested/principal amount invested in th

I have some questions (you may think it has crazy questions) are as fallows:-
1.If we invest in private insurance companies and private mutual fund companies in any policies offered by them, if in future that private company closes down permanently and stopped all its operations, will we get back all our money invested/premiums/principal amount invested in them ?

2.If we invest in private banks in any accounts or fixed deposits offered by them, if in future that private bank closes down permanently and stopped all its operations, will we get back all our money invested/principal amount invested in them ?

Thanks
Smart trade da and DSM have given you apt replies .

"These banks can ( and they do ) go in bankruptcy and investors can loose their deposits. Government does not guarantee any repayment.
Smart_trade
" This is very true ..Would like to reinforce the same ,as I lost a fixed deposit done by my grand father in my name ..It was private bank .
 
#5
Re: ..........will we get back all our money invested/principal amount invested in th

sad lol i feel sorry for that guy who won money deposited money inbank and even then too lost lost lmao (1992 case)

so should have deposited in Bank of india | idbi bank | State Bank of India ? they govt operated banks right ?so safe ?

saala allthis fraud makes me feel unsafe better to buy gold give to wife / lady in house ^^^ hehe Or make a bricks of gold .:xD

or keep no more then 2 lakhs in 1 bank whats so ever :xD

 
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