हिंदी में यह आलेख देखने के लिए, यहां क्लिक करें
Everyday we are hearing about frauds in Indian financial sector. One day one bank is goes down, the next day some real estate company goes down. Public is worried about safety of the principal amount itself, forget the interest part. Some recent frauds of DHFL, PMC Bank etc are example of this.
How our money is more vulnerable in Banks?
As an individual, one can usually spread ones saving in 3 or 4 banks. Suppose that one has done Fixed Deposits of equal amount in four different banks. Now, if one bank goes bust, almost 25% of savings will immediately vanish. Even one receives 50% of savings kept in that particular bank, still loss would be more than 10% just by one bank going down.
Then, how Debt Mutual Fund ensures safety?
To understand how Debt Mutual fund is less vulnerable to loss than Banks deposits, lets understand how Mutual Fund works.
Mutual fund invests money in different companies, hence Mutual Fund as such cannot go bust, but those companies where mutual fund invests can go bust. This is the way mutual fund returns can get impacted.
Let us take example of Aditya Birla Sun Life Savings Fund. As of Sept 2019, this fund has invested in about 180 different schemes/companies. Let us see top 10 investment of this fund:
| Company Name | Amount (Rs Cr) | %age |
| 8.50% National Bank For Agriculture and Rural Development (31/01/2022) | 538.6963 | 3.49 |
| 7.42% Power Finance Corporation Limited (26/06/2020) | 466.6735 | 3.03 |
| 7.59% REC Limited (13/03/2020) | 428.7487 | 2.78 |
| 9.22% LIC Housing Finance Limited (06/12/2019) | 322.2634 | 2.09 |
| 8.20% Power Finance Corporation Limited (14/09/2020) | 308.2891 | 2.00 |
| 8.53% Power Finance Corporation Limited (24/07/2020) | 293.5261 | 1.90 |
| 8.52% Power Finance Corporation Limited (09/12/2019) | 165.9469 | 1.08 |
| 8.00% National Housing Bank (22/02/2022) | 161.4986 | 1.05 |
| 7.50% Power Finance Corporation Limited (17/09/2020) | 160.6482 | 1.04 |
| 8.02% National Housing Bank (31/01/2022) | 151.163 | 0.98 |
As you can see, this fund has invested not more than 5% in one single company or scheme. This means that if one of the companies where money is invested by Aditya Birla Sun Life Savings Fund, goes bust, max loss can 5% only (or to the extend money invested in that Scheme).
Can an individual spread investment in so many companies or bonds?
Debt Mutual Funds usually invest money in govt and corporate bonds. There is minimum investment limit in most of the bonds and that is in several Lakhs. Hence, as an individual, it is not feasible for one to spread ones investment in 100s of bonds. While, funds pool money from thousands of investors, hence fund houses are able to spread the investments in large number of bonds. Also, this activity is performed by a team that is dedicated to do this job on behalf of investors like us.
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