How to turn mis-buying selling into smart buy

How to turn mis-buying selling into smart buy

Are you completely satisfied with the financial products you have purchased or the investments being sold to you? If your answer is No, is it due to either selling or incorrectly buying?
Mis-selling means that you are given inappropriate advice, the risk is not explained to you or you are not given the information you need, and ending up with a product that is not right for you while mis-purchasing means the buyer’s ignorance of the details and complexity of the financial product.

How to turn mis-buying selling into smart buy

There is one example where a pensioner and his wife go to financial planners to review their investment portfolio. What worries the planner, he knows that apart from 32 mutual funds – most of them NFOs launched in the last 3-4 years and a long list of equity shares, they have endowment policies, ulips and retirement plans. It is impossible for the retired petroleum engineer and his mother’s wife to understand the various charges and charges for this product before they buy it.

So who’s to blame in this case? Five relationship managers of 3 banks that sell all these things or their spouses?

Unfortunately, all financial products in India are not bought but sold. In addition, there are 3 reasons behind it: 1. Some people buy to please friends, neighbors or relatives even though both the client and the seller understand the product. 2. Another reason is the ego. The customer does not let him admit that he does not understand the product. He convinced himself that if a large organization sells and its products have been approved by Sebi or Irda and that would be nice. 3. In addition, the third reason is that most purchases are made without professional input, because customers do not know who to ask. How to turn mis-buying selling into smart buy

Among all these financial products, Insurance scores the highest. It is still wrong to sell it so commonly in India that our esteemed finance minister is oncesaid, “because of this mis-selling, insurance stumbles in India”.

In fact, insurance should be bought to protect your financial life from unwanted surprises and to cover your family’s needs when you are not around. However, most of the time it was bought to save taxes. Moreover, attention has not been given to details such as:

• Which type of cover is provided? Regular income or the amount of post-retirement lump sum or in case of death. • Does this policy cover enough to suit your needs or not? If so, then how much premium cover he gave?

• How many commission sellers have passed this agreement?

• Last but not least what are the exceptions where your claim will not be paid? Ignorance of this lack of knowledge makes you the wrong buyer where your seller is perceived as the wrong seller.

Generally, very thin lines exist between mis-selling and fraud and mutual funds are no exception to that.

I can tell one case relating to this where a retired person is sure to invest a large number of equity-related savings schemes.

When the market falls, he can not even cut his losses because his money is locked-for three years. As for pensioners, liquidity is very important.

Can you tell me who is here One of the wrong buyer buyers or sellers is one of the sellers? Because • Investors do not ask enough before approaching the seller for investment. He is not aware of such things as entry and exit burden on Mutual Funds, then open mutual funds and open mutual funds. • The Distributor does not make him aware of these things (for his fat commissions) despite knowing his age and financial situation.

Therefore, there is no end to the argument that the buyer is the wrong buyer or the seller is the wrong seller if the financial product but the most important is

The solution: In general, the practice of the producer of financial products has a bouquet of offerings, which correspond to the company, distributor or customer. Given the complexity of financial products and broad options in front of it, it is not easy for customers to know which product best suits their needs.

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