3 Replies to “Can asset management company default (AMC)?”

  1. Any company can “default”…. go out of business.

    The funds and positions for all Mutual Fund are held in a segregated account… by a third party (as required by law).

  2. Any company can go out of business and hence default, What you may want to know is how safe is investing in MF. In my opinion they have got good regulatory bodies like SEBI and hence good regulation. The management of MF is in three tier – Sponsor, trustee company and asset mgmt co. SEBI is very strict and that is why you may relax and keep investing.
    Kindly do some research on the fund before investing.

  3. no friend they can’t but there networth could be eroded signalling reduction of their nav to be below par ie below rs 10 in mutual fund&rs 100 generallyt in case of etfas their listing price.

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