How Investors Can Stay Safe

Worried about cyberattacks on mutual funds? Learn how to protect your investments, track your data, and stay safe in case of digital breaches.

In April 2025, a cyberattack on Nippon India Mutual Fund sent shockwaves through India’s investing community. As one of the country’s largest asset management companies (AMCs), Nippon is trusted by millions. When their systems went down — making it impossible for investors to access portfolios or perform transactions — it raised serious questions about safety, transparency, and investor protection in the digital era.

While Nippon stated that investor money and data were not affected, the event left behind a trail of uncertainty. Many investors are now wondering:

• “What if I lose access to my investments again?”
• “How do I track what I’ve really invested?”
• “What if my investment history is erased or altered?”
• “How do I protect myself when something like this happens again?”

If these questions have crossed your mind, you’re not alone. In this article, we won’t talk about what mutual fund companies should do. This is for you, the investor — to help you understand what’s at stake, what you can control, and what you should do to keep your mutual fund investments safe and trackable, even in the worst-case scenarios.

Cyberattack on Mutual Funds: How Investors Can Stay Safe

Understanding the Real Investor Risk

When systems go down due to a cyberattack, the two biggest fears are:

1. Loss of Access

You can’t view, redeem, or modify your investments. Even though your money is technically safe, being locked out can feel like losing control.

2. Data Loss or Mismatch

What if your account data is erased or corrupted? What if your portfolio says ?5 lakh but you know it should be ?8 lakh? These are terrifying possibilities, especially when there’s no visible proof on your end.

Let’s tackle these fears one by one — with clear, actionable steps.

Step-by-Step Guide to Protect and Track Your Mutual Fund Investments

1. Maintain an Independent Record of Your Investments

Never rely only on the AMC app or website to show your portfolio. Maintain your own record outside the platform using any of the following methods:

• A spreadsheet (e.g., Excel or Google Sheets) listing:
  • Scheme names
  • Folio numbers
  • Amounts invested
  • Dates of investment
  • Mode (SIP or lump sum)
• Take regular screenshots or PDF downloads of:
  • Transaction history
  • Account statement
  • Folio summary
• Save CAMs or KFintech consolidated account statements (CAS) monthly or quarterly.

If something goes wrong, you’ll have documentation to prove your true holdings.

2. Use R&T Agents (Like CAMS or KFintech) to Cross-Verify

All mutual fund transactions — across different AMCs — are routed through Registrar and Transfer Agents (RTAs) like CAMS and KFintech.

Create accounts with them (if you haven’t already) and link your PAN and email. These platforms:

• Show aggregated portfolios across AMCs
• Allow you to download CAS (consolidated account statements)
• Offer additional verification options if AMC portals are down

If an AMC system fails, your folio and investment details are still visible on CAMS or KFintech — so this acts as your backup.

3. Know Your Folio Numbers and Keep Them Handy

Each mutual fund investment is tagged to a unique folio number. Think of this like your bank account number with the AMC.

If systems are ever hacked and you need to verify your investments, your folio number is your primary reference ID.

• Keep a record of all your folios in a document.
• Tag them to the right scheme and amount invested.
• Store them securely — preferably offline too.

4. Schedule a Monthly Investment Backup Routine

Set a reminder once a month to:

• Download your mutual fund statement from CAMS or KFintech.
• Take a snapshot of your portfolio.
• Check for any unauthorized or unexpected transactions.
• Cross-check amounts and NAVs with your spreadsheet or app.

It only takes 10–15 minutes a month and could save you immense trouble later.

5. Use a Personal Portfolio Tracker (Optional but Powerful)

If you want automation without relying fully on AMC apps, use platforms like:

• Value Research Online
• Kuvera
• Groww Portfolio (even if you don’t invest via it)

They pull data from your email statements or CAMS and create dashboards. This becomes another third-party layer of visibility over your investments.

Make sure to:

• Review permissions and privacy policies
• Use 2FA and strong passwords
• Don’t rely solely on these tools — combine them with manual backups

6. Store Physical Copies of Initial Investment Proofs

Especially for older or large investments, keep the original application form, UTR number, or acknowledgment slips. In the rare event of a complete mismatch, these are vital for proving your case.

If you invest via online platforms (like Paytm Money, Zerodha, etc.), save:

• Payment confirmations
• Fund house confirmation emails
• Transaction reference IDs

What If You Suspect a Mismatch After a Cyberattack?

If you log in post-incident and something looks off — like missing schemes, incorrect amounts, or strange redemptions — act immediately:

1. Do NOT perform any new transactions until your portfolio is verified.
2. Contact the AMC via multiple official channels (email + phone + app chat).
3. Raise a grievance with CAMS/KFintech using your folio number.
4. File a complaint on SEBI’s SCORES portal if you don’t get a response in 7 working days.
5. Attach your own records (statements, screenshots, folio history) as evidence.

Remember: Your data can be recovered more easily if you already have your side of the story well documented.

Frequently Asked Questions (FAQ)

“If data is deleted during a cyberattack, is my money gone?”

No — your money is not held by the app or website. It is held in the mutual fund trust. However, retrieving accurate records depends on how well the AMC, RTA, and you have maintained your data trail.

“Can someone redeem my units if they steal my credentials?”

If they gain full access and OTP verification is not active, yes — it’s possible. That’s why 2FA and transaction alerts are critical.

“What if I don’t have a record and my investments are missing?”

In the worst-case scenario, you’d have to:

• Provide proof of payment
• Reference UTRs or account debits
• Let the AMC and RTA investigate This is a long process — and that’s exactly why your own records matter so much.

Final Words: You Have More Control Than You Think

The cyberattack on Nippon India Mutual Fund is a reality check for every investor in India. But it doesn’t mean you should panic or avoid digital investments altogether.

Instead, it means you should:

• Take personal ownership of your investment tracking
• Build a backup system with folio records and third-party verifications
• Be ready to spot and respond to inconsistencies fast

Technology is powerful — but when it fails, your discipline, awareness, and preparation are what protect your wealth.