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<\/center><\/p>\nIf a bank goes bust<\/strong><\/p>\n Delhi resident Deven Mehta wanted to know what would happen to his money in savings account if his bank were declared bankrupt? \u201cIs it true that the amount of Rs 1,00,000 is insured in the savings account of any bank?\u201d he asked.<\/p>\n \u201cYes, an amount of Rs 1,00,000 is insured for every depositor. The rules of Indian commercial banks are such that they render depositors safe,\u201d said Venkatesh.<\/p>\n \u201cFor every Rs 100 a bank collects as deposit, Rs 25 will have to be kept with the government as bonds. Governments cannot default, so Rs 25 is anyway safe. Another 8.5 per cent cash should be kept with the RBI, so that is safe again. Besides these there are other safeguards in the banking system.\u201d<\/p>\n \u201cLehman Brothers lent 40 times its capital as loans and Goldman Sachs lent 27 times it capital but India is nowhere near that kind of cowboy lending,\u201d said Venkatesh.<\/p>\n Safest bank?<\/strong><\/p>\n As Indians feared for their deposits, the talk on the street was that public sector banks were safer. Is this true?<\/p>\n \u201cEvery institution should not be seen in the same light anymore. One should rate the credit-worthiness of an institution and even banks are subject to credit ratings. One should see the credit-worthiness of a bank and not whether it is public or private. I would keep my money in a Triple-A rated institution,\u201d said Bajaj.<\/p>\n Should Indians withdraw their money from British banks? Is it the Indian government which guarantees savings in foreign banks?<\/p>\n Venkatesh\u2019s advice was not to be scared, as the British government was doing its utmost to help its banks. \u201cThe British government has gone all out to reassure its banks in a big way. I assume that that assurance applies to branches in India. I think a scare (about British banks) is uncalled for. British banks is an umbrella term, one would have to refer to individual banks,\u201d she said.<\/p>\n Staying invested<\/strong><\/p>\n Bangalore resident Rakesh Kumar invested in the markets when the Sensex was at 20,000. \u201cI can afford to remain invested for the next three years. Is my money safe or should I sell bearing a huge loss?\u201d he asked.<\/p>\n Tulsian\u2019s advice was: if you are an investor you must hold and if you are a trader you must sell. Now is a good time for people who have funds and are waiting to invest in shares.<\/p>\n Stocks of PSU banks, sugar stocks, pharmaceutical and FMCG companies look good for investment, he said.<\/p>\n It always the right time to invest\u2014investors right now have to decide whether they want to preserve their money or use it to buy stocks which are normally unaffordable, said Bajaj.<\/p>\n \u201cIf I want to play safe I would probably put my money in gold mutual funds, which is a very good instrument to invest in this uncertain period,\u201d said Bajaj.<\/p>\n Invest in equity funds and choose a large fund management house, which has lots off assets under management and a track record of at least 5-10 years. \u201cChoose a large-cap and diversified fund. Whenever the market recovers, large and frontline companies will go up first, so invest in a large-cap fund,\u201d said Bajaj.<\/p>\n Wait, watch and invest cautiously was the advice of the experts.<\/p>\n