Are your investment agent cheating you?
Yesterday,
I was my in area’s neighbor shop for my hair cut. He had narrated one incident
with happened with his relative who is not educated and never went school. His
relative’s main profession is agriculture. One agent had come to him before 5
year’s back and promised him 2 times return whatever amount he deposit. He had
trusted him and deposited Rs 45,000 with the hope that after 5 year he would
get Rs 90,000. After completing 5 years when he had contacted his agent, the
agent was not available. After contacting to the concern office when he had
knew the value of his investment. It was shocking experience for him. Can you
guess the value of his Rs 45,000 invested after 5 years? The value was only Rs
17000 !!! only. Such huge wealth destruction he had never imagined. His agent has
cheated him by making false promise and hot informed about the investment
product.
Till now many of you may guessed, yes it was ULIP product. A product
designed by mixing insurance and investment called ULIP.
I am sure
that you also here such type of cheating incidents regarding investments. I
always write in my blog and during the meeting with investors that never mix
your investment with insurance need in one product. Avoid such products.
I think
insurance product sold by more in emotional sense and less in real need sense.
The agent finish conversation in very hurry and their large focus on sign the
document quick. They only tell you what you want to hear like “promise” and
“guarantee” type words. They often do not talk about product in detail never
tell you about the risk of that financial product. My friends keep in one thing
in your mind that there is not a single financial investment product designed
in the world without risk. Every investment product comes with a type of risk.
Now the question how to avoid yourself being mis-sold. I suggest you some point
here.
- · Do read carefully before sign any form or documents.
- · Understand about the product which offered by your agent.
- · Contact the company’s call centre and cross check your agent.
- · Never give and bank cheque or sign the form in first meeting.
- · Collect all detail about agent like his office address, contact, employee ID, job tenure, some little background about him and cross check by calling his office
- · Use internet to know more about the offered product
- · Focus on real return after cut taxes and expenses.
There are
many more points worth discuss which we will discuss again sometime.
For more detail and any
other query related investment, you can contact me through my email.
Warm regards,
Arvind Trivedi
Certified
Financial Planner
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