Recently there was an article in the newspaper titled Mixing Life Insurance with Investment is a Common Mistake. It was published in a column titled “OOPS! Mistakes Investors Make” in Business Standard 2 August 2018. the article written by Kayezad Adajana explains the view point of Maher Dhamodiwala, who we are told is the founder… Continue reading No Fraud Here
Like in in the famous fable where the Tortoise wins the race against the fancied rabbit, in investments too the much maligned low risk investments may be better under conditions of market volatility, as compared to high risk investments. Slowly but surely the low risk investments can outperform the high risk investments, beat the inflation… Continue reading And the Tortoise Wins!
To sell life insurance we need to conduct financial planning We sell life insurance. Our natural desire is to continue to do so. Our natural desire is to not advise the customer on the totality of his financial investment needs. We are also not qualified to advice a customer on whether to buy risky investments… Continue reading Why Are Today’s Customers Looking for a One-Stop Financial Solution Adviser? And Why the Life Insurance Agent Should be the person to offer it?
A few days ago I had written in this Blog that SEBI had asked AMFI to moderate its advertisement campaign Mutual Fund Sahi Hai. (Read Good News from SEBI – Mutual Funds Sahi Nahi Hai) Well it appears that the Association of Mutual Funds of India (AMFI) has not acted, even though its President Mr.… Continue reading Beware of Balanced Funds – Mutual Funds Sahi Nahi Hai
There are thousands of mutual funds. They invest money in shares, debt (especially corporate debt), gold, real estate, foreign exchange, commodities, etc. You will agree that the prices of the assets in which mutual funds invest constantly change, moving up or down. Any investment in such assets is therefore subject to the investment risks of… Continue reading How do you compare the return of risky investments with that of lower risk investments?
In this Blog Help India Insure, it has been our consistent view that mutual funds as a rule do not give high returns. (Read the all the articles under the category Finance for Life Insurance, also read the power point presentation Why Life Insurance is the Best Financial Product). Some do for a short while,… Continue reading Good News from SEBI – Mutual Fund Sahi Nahi Hai
First Things First Indians Mostly Save in Low Risk In our previous article (Read Indians Want Long Term Low Risk Investments) we had shown that Indians save money for the long term and for the short term needs. For long term needs they save in life insurance endowment, provident fund and pension. For short term… Continue reading A Customer Wants to Buy Mutual Funds, How Should We Respond?
Factors considered by individuals when they invest money Individual financial decision making is based on the following important aspects. Professional Trust: A customer needs to develop professional trust and confidence in you. It is not sufficient that you are his relative or friend. Suppose you tell your customer that he will get a monthly pension… Continue reading Financial Planning – The Real Issues in Individual Financial Decision Making And Why You Should Sell Risks and Not Returns
What is the preferred duration of holding an investment in India? Let us classify investment and saving holding of individuals as long term and short term. Long term is 10 years or more, while short term is less than 10 years. If we take a look at data that RBI releases every year on Components… Continue reading Look at Your Market Closely – Indians WANT Long Term Low Risk Investments
We have already told you (see Are Debt Mutual Funds or Debt Instruments Really Safe?) that there is little or no difference between debt funds, equity funds, and balanced funds of mutual funds when it comes to riskiness of the Fund. We all know that companies have defaulted on payment of principal and interest… Continue reading Look where debt fund money is invested by mutual funds – And they say debt funds are not risky
