A mutual fund is a type of financial vehicle made up of a pool of money collected from various investors to invest in securities like stocks, bonds, money market instruments, and other assets. There are many mutual fund platforms like Groww, Paytm money, Coin by Zerodha, etc. we use to invest in a mutual fund. If we have invested in any of these platforms and it is shutting down. Will our money be blocked? Or SIP will stop? What we will do, if this happens? Let’s discuss all these questions in this article as we move ahead.
What if the Mutual Fund Platform Shut Down?
- All these platforms are only a way to connect us with the actual mutual funds, they are nothing more than the user interface. They provide us the facility to invest in all the mutual funds in one place.
- However, it rarely happens that any of these kinds of platforms shutdowns. Generally, large companies sell their mutual funds units if they have to shut down.
- But, if it ever happened then all our transactions and data are saved with RTA (Registrar Agents) like Karvy, CAMS (Computer Age Management Services), etc. we can find our mutual fund on platforms like Karvy, CAMS, etc. For example, all the mutual funds related to CAMS will be found on CAMS.
- There is also one platform named MFU made by all mutual funds organizations where we can find all the details of our mutual funds by registering on that platform. All our past transactions and mutual funds will be visible there and we can do transactions also.
- MF Central is a new platform opened jointly by Karvy and CAMS together where we can find all the details of our mutual fund investment.
- There is also a cash statement received by all mutual fund investors on monthly basis, where they can find all the details of their particular mutual fund.
What Should Investors Do?
Hence even if the mutual fund platform shuts down all our data will be safe and secure, there will no harm to any investor if any of these platforms shutdowns, therefore one does not need to panic in this case.
Disclaimer: The information here is provided for reference purposes only and should not be misconstrued as investment advice. Under no circumstances does this information represent are commendation to buy or sell stocks or MF.