by Kynon » Fri Jun 13, 2014 9:08 am
In theory it is very much possible but in reality it is a distant dream for the following:
1. For the NAV to touch 0 in a index fund the index itself has to go bust
2. You pay for a proper management(2.25%) I assume they have brains for this scenario not to happen.
3. In case of malpractice SEBI does step in & has the option of diluting the entire trutees of the fund & also allowing a take over.
4. The trustees are also responsible for the investors money & have a 35% stake in the fund itself so logically they will step in once there losses mount.
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