Union Home and Cooperation Minister launched a portal to refund the money of around four crore small-time investors of four cooperative societies linked to the Sahara group of companies.
Two Sahara Group entities are being investigated by several agencies including the Enforcement Directorate (ED) for alleged money laundering and foreign exchange rules violations.
Launching the portal on the Ministry’s website, that 1.7 crore investors will benefit in the first phase and claims up to ₹10,000 will be settled first. The money will be returned to the Aadhaar-linked bank accounts of the investors within 45 days.
Small investors affected
“Small investors are hit the most. Take the example of Sahara, case dragged on for many years, several agencies
seized their assets. We invited all stakeholders including SEBI, ED, CBI, SFIO. Asked, can we devise a system for the benefit of small investors? All agencies filed a petition in Supreme Court which took a landmark decision that if all agencies agree, a committee under retired SC judge will monitor the reimbursement,”.
Small investors are individuals or households who invest in financial assets for the purpose of generating income or growth. They typically have a limited amount of money to invest, and they may not have the same level of experience or knowledge as larger investors.
There are a number of different ways that small investors can invest their money. They can invest in stocks, bonds, mutual funds, exchange-traded funds (ETFs), and other financial products. They can also invest in real estate, businesses, and other assets.
Small investors face a number of challenges, including:
- Limited resources: Small investors typically have a limited amount of money to invest, which can make it difficult to diversify their portfolios and reduce their
- Lack of experience: Small investors may not have the same level of experience or knowledge as larger investors, which can make it difficult for them to make informed investment decisions.
- High fees: Small investors may have to pay higher fees for investment products and services than larger investors
Despite these challenges, small investors can still achieve their financial goals by following a few simple steps:
- Do your research: Before you invest any money, it is important to do your research and understand the risks involved.
- Start small: If you are new to investing, it is a good idea to start small and gradually increase your investment over time.
- Diversify your portfolio: This will help you to reduce your risk.
- Rebalance your portfolio: This will help you to keep your portfolio aligned with your risk tolerance and investment goals.
- Invest for the long term: This will give your investments time to grow.