I am visually impaired, and I want to invest in mutual funds. My concern is that since all transactions happen through fund distributors, what if a distributor dupes me of my money? Does the RBI provide any security in such a case?
-Nishant
The investment procedure for visually impaired people is the same as for others. You will need someone’s assistance to invest in mutual funds. But there is no security or protection available from the RBI. You will have to have faith on somebody to invest through.
When you invest in a mutual fund, the units are allotted in the name of the person who signs the cheque, or from whose account the money is transferred. Similarly, when the fund units are redeemed, the money is transferred back to your bank account only. This mechanism gives reasonable protection against frauds, although it isn’t fool proof.
This article was originally published on December 29, 2011.
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