How To Figure Out Whether An Investment Platform Is Safe Or Not
In any walk of life – safety is paramount.
This sentiment is exponentially magnified when it comes to dealing with your money and planning your savings and investments. You probably didn’t worry much about financial security when your parents were at the helm, and it may seem a bit more daunting making financial decisions now – right?
So, why are you feeling this way now?
Because you are entering an unknown space, using your hard-earned money to make decisions like responsible peo-… adults! Like responsible adults. There are simply so many factors to account for when making an investment. But the most important one is knowing how safe and secure your investments are. And since a large part of being this responsible-with-your-money kind of adult is combating the fear of the unknown – information in your knight in shining armor!
So, here are the main pointers to help you determine if your chosen investment platform is in fact safe –
Registration Number – There is always a registration number, folks! Typically, any entity that is legit in their investment solutions will be registered with either SEBI (Securities and Exchange Board of India), RBI (Reserve Bank of India), or AMFI (Association of Mutual Funds in India).
The Red Flag – Absence of a registration number with either one of these organizations.
Terms & Conditions – This one’s a tough one to follow through. It is also an obvious pointer in learning about the legitimacy of an investment platform. You can take the time to thoroughly examine the Terms & Conditions or run a quick Google search on the investment platform’s (aforementioned) registration number to check their validity.
The Red Flag – No Terms & Conditions. Registration Number check turns out to negatively reflect the investment platform.
The People Angle – Investment platforms are ultimately run by people. And it is the people behind a company that ultimately have the ability to garner goodwill from customers. Check up on who runs the investment company, what their clients are like, and what investors are saying about them to make sound investment decisions.
The Red Flag – Poor goodwill. Poor customer reviews. Negative publicity.
As our founder so succinctly put it in an interview with ABP:
“Take stock of whether the company details and registration number match; what people are behind the platform and whether they really are a registered and regulated entity. If this registration number itself is missing, that is definitely a red flag.”
All three of these pointers can steer you toward wiser and safer financial decisions. And the only person who is truly responsible for the safety of your money is – you guessed it! – you! So do your research and make decisions based on what you have learned. Even when investing with an app like ours – check out the Deciml registration number – see what the Deciml investment portfolio and management background is like – read the Deciml FAQs to know everything you need to about Deciml and how we work – do your research and if everything you find measures up to your standards (and it will!) then start investing as soon as possible.