Misselling of investment products has reached menacing level. I am illustrating my point through some paper clippings alone. Many people has lost their life savings due to misselling.
Our own Suchitra Sen has been vicitim of misselling. Even CMD of a Central PSU has lost lot of money , in-spite of his access to superior information.
I have been a victim of mis-selling myself says Hoshang Noshirwan Sinor, newly appointed chief executive officer of Association of Mutual Funds of India (Amfi)
Mis-selling is rampant despite Amfi laying down a code of conduct for funds and distributors. Is there a way out?
I have been a victim of mis-selling myself so I would know. When I took over Amfi, the first thought that came to my mind is how do we stop somebody from mis-selling or misguiding gullible investors. More and more fund houses are launching complex products that frankly even many agents would not understand properly. Not only do some of them mis-sell, they also misguide. Something needs to be done. I have no ready answer at this stage, but this is on top of my agenda.
(source : Posted: Sun, Mar 7 2010. 10:45 , Money Matters LIVEMINT.COM)
This is what has happened to the head of most important financial institution.
Few paper cuttings will illustrate my contention clearly :
See how a former banker quit banking, since his main job has been relegated to selling (misselling) insurance and destroying wealth for investors.
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Watershed article in Money Today Magazine. See how nicely people are cheated!
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What to do, if you have bought wrong policies ?
Are Endowment & Moneyback ( both are sold either as ULIP or Traditonal or Opaque policy) policies good for you ?
Money back policy is the worst policy one can buy and it is only product which the agents sale in a missionary zeal. Almost eveRy investors ends up buying Table 14 or 18 of LIC Charts for various policies.
Can an agent say " one particular policy is giving 11% return " ?
No, completely illegal - read ....what CS Rao the head of apex body of Insurance (IRDA - which is RBI of Insurance Companies)
Can an agent say " one particular policy is giving 11% return " ?
No, completely illegal - read ....what CS Rao the head of apex body of Insurance (IRDA - which is RBI of Insurance Companies)
Buying Mutual Fund during NFO is good ?
Read....
What is the actual meaning of 9% p.a. flat rate of loan ?
Many people buy stocks directly. It is better to invest through Mutual fund with the help of expert fund manager. Very people (less than 2%) people can outperform an expert fund manager.
Daniel Kahneman won nobel prize on Behavioural Economics in 2002, although he is a psychologists. He shows how people take irrational decision due to loss aversion etc. How people talk about winning bets and do not talk about loss. How costly is that in a long time.
Listen to it form the master.
2 comments:
I am sorry for what you have been going through.Misselling is indeed a serious crime and I think you should have reported this crime to your nearby police station.
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