1. Insurance advisors are bad because they cheat their customers by selling them a policy with an eye on commission.
2. Mutual fund distributors are bad because they get commission from the fund houses, which otherwise could have been invested to get better returns.
3. Relationship managers are bad because they work to get more profits.
4. Insurance companies are bad because they give huge commissions to advisors/agents to get business, which could have been used to get better returns.
So my question is, is this author bloody working for charity???? Even NGO which are supposed to be non profit organisations pay a huge salary to the people working there these days. Why should an insurance advisor, mutual fund distributor or a relationship manager not look at the profits????
And can some one explain why is rediff publishing crap after crap from this author? The only article which made sense from this writer was the investing gems from Warren Buffet. But then she was quoting somebody, not her own thoughts. So it was okay. Anything coming out of her own thoughts end up being crap.
RE:Do you work for free???
by Chandrashekar Muddu Naik on Jul 21, 2007 08:10 PM Permalink
See I have been investing thru ICICI. I had an investments advisor advisingme on various options. He used to give me a clear idea on all the prosucts and let me decide what to do by saying me to take time. And I ended up investing in real good products. Then recently he quit ICICI and moved out of this place where i stay. The present ones in the bank are asking me time and again that I dont have anything from ICICI Pru except for one product. Here they are not trying to advice but to sell. So by dealing with different people from the same institution u knw whats the difference between a honest advisor and an so called advisor working sincerely for his company i.e. trying to sell products of their own. So Mr. I feel this article is perfect and I have personal experience and logic to back it up. Said that there is no harm in taking comissions but the role what one is playing shud be played honestly withpout being too greedy or selfish. Chandra
RE:Do you work for free???
by Mumtaz Ansari on Jul 19, 2007 12:38 PM Permalink
I think you are right. The article is very lame and doesnt carry any good points. To sum up - its crap.
RE:Do you work for free???
by Bingo Gols on Jul 19, 2007 01:43 PM Permalink
It is about the investor's interest..!!
A game is better played when all the players know the rules well. And I see this article as educating for me as a consumer / investor.
Investors have the right to gain the most out of their money, and articles like these have served as a major means for the investor to safeguard their interests.
So your annoyance is clearly ill founded and reflects your self being one of the "relationship managers". People like you don't want the investors to have awareness of such facts, so that they could easily be treated as dummies..!!
RE:Do you work for free???
by Subash Patel on Jul 19, 2007 12:02 PM Permalink
Thats true. But relationship managers eye only on the money of investors these days. Its our money afterall, and we have every right to know how it is utilised. Nothing wrong with this article. Thanks to rediff for helping people to understand be cautious on getting carried away by Brokers SWEET words.
RE:Do you work for free???
by on Jul 19, 2007 12:13 PM Permalink
Subash,
I dont think a relationship manager only looks at the money you have. Also look at the points the writer has given.
New MFs vis a vis the old MFs. These old MFs were also new MFs at some point of time, right? So if someone is advising to go in for a new MF what is wrong in that? Again a new MF like Lotus contra fund has come out with an option of no entry load if invested thru SIP. So if a fund manager advises this fund, is it bad? There are a number of funds which came out with NFOs since the last two years and many of them are performing well.
Saying something against ULIP has become a surefire way of posing that you are taking the sides of the investor. In the various posts in the past, I have very clearly given the benefits of ULIP. The problem is people write without understanding the basics of a product and they have the audacity of calling themselves EXPERTS!!!!
RE:RE:Do you work for free???
by Dinesh K on Jul 19, 2007 12:24 PM Permalink
I agree with the fact that the writing style could have been improved. It does not seem like a professional wrtiteup; even when I approach a Investment advisor, Im aware that he/she is there to make profits by commission as well. No pain no gain.
The idea here the author is trying to convey is the investor should not fully trust the advisor and keep these bullet points in mind before approaching them. As a checklist, these bullet points are correct ones. For example, while approaching a advisor (investmnent or portfolio not financial) there is no need to let them know how much money is there in your account. Just tell them that you have Rs.xxx that you want to invest. In that way, what the author has mentioned is correct. Similarly when the advisor advises a new MF, ask them the reasons why they 'advise' that keeping in mind the author's point that they might be getting high commission on new MFs (since its hard to sell because of lack of perf history to compare against).
Still, I feel Rediff could do a better job of proof reading these type of article so that they sound like coming from someone who is professional, than a housewife picking tips from here and there.
RE:RE:Do you work for free???
by Anil Datta on Jul 19, 2007 12:35 PM Permalink
It is no use crying over some professionals duping their customers. A lot of others like doctors, lawyers, vehicle maintenance people, insurance agents etc. give advice which is not in the best interest of the customers and customer has no other way but to follow that advice.
Best way is to get information from more than once source, if possible. There also is a pitfall, as you can get completely conflicting advice.
RE:Do you work for free???
by Gaurav Maheshwari on Jul 19, 2007 01:48 PM Permalink
It is nothing wrong in this artical. It should be known to all. As about the relationship manager, All are not money minded. My ex relationship manager in HDFC was really good.
RE:Do you work for free???
by sanjiv kumar on Jul 19, 2007 12:08 PM Permalink
Hi Mr. * * The purpose of this article by rediffmail is to make aware of the way you and I invest. Not to discourage customer as well as relation manager. The point you are mentioning is your imagination. Rediff is getting great job to make peole aware and is not negative. Hence abstain from making rash conclusion and using unparliamentary word like "bloody". Best regards Sanjiv
RE:Do you work for free???
by Manvendra Bhangui on Jul 19, 2007 12:13 PM Permalink
Yes I had this experience with an ICICI relationship manager who tried to sell me ULIP. I came to know of the premium charges only when the policy details came. I am now totally wary of these relationship managers
RE:Do you work for free???
by Divya SHARMA on Jul 19, 2007 12:24 PM Permalink
Profits are okey but not at such a higher level. You cannot fool innocent/unaware investors like this. You CAPITALIST, STOP EXPLOITING INNOCENT AND UNEDUCATED CITIZENS OF INDIA. You have filled your coffers and let a normal person understand your tricky games.
