Why there are so Many Cases of Misselling of Financial Products in India?

26 October 2014

Why there are so Many Cases of Misselling of Financial Products in India?

Greetings from Hitesh! I am sure you would have a great start of the New Year. Many of you must be spending time with your family or many of you would have gone for a vacation! I wish you have a great time and recharge your energies for the New Year. I have often come across news of misselling of financial products by agents / financial advisors or employees of insurance or mutual fund companies or such companies themselves doing the misselling.

Many times people say – IRDA or SEBI or Government is not taking due care of the small investors and they are taken for a ride!! There are lot many examples of Chit Funds / MLM companies running away with the money of the small investors!! Let us look at the scenario from two perspectives – Selling and Investments. Since we are talking about Misselling-  let us look at the selling aspect first.

How a Typical Agent Earns his Bread?

An agent is told an interesting statistics when he starts his career. He has to call 9 people to get an appointment and he has to meet 5 such people before he can sell a product!!

Effectively this means he has to call 45 guys – listen NO for 40 times to sell just one product. His earning depends on the commission he gets by selling such products to you.

How Normal Investors Invest?

Normal investors know this secret.  So, the best thing for them is to avoid these guys / if they find they can’t avoid – bargain with him / if they can’t bargain – take commitment for sure shot or guaranteed return!! If they can’t get – blame the agent or company.

What is the Real Issue?

There can be many shades to this problem. But I am touching the most basic issue. According to me the issue is Lack of Respect for each other!!

If you have to call somebody for 9 times to talk about his benefits– get rejected for 8 times – listen NO /or any such derogatory things – do you think you will have respect for your client??? You are forcing him to disrespect you and your money!!

Normal person takes appointments of Doctor / Lawyer / School or Tuition Teacher of his Kids and any such professional person. He gives due respect to these guys. But when it comes to investments – he does the above.

The Real Irony of Normal Guy:-

Look at your life – How many times you get sick in a year? How many times you need a serious medical treatment in a life time? How many times you have legal issues in your life time? Your kid’s school teacher will be different next year!!

But you earn money every day, every month and every year. So, your need for right financial adviser or investment consultant is more serious then the need of any other professionals.

Coming back to the guarantee aspects – they want sure shot return!! Can you find out a Doctor who gives you a guarantee to save your life from critical illness or lawyer to win a case in your favour? You will not find. They will say – we will do what we can – rest is left to GOD/Court!!

How is Destiny Management Different from Others?

Since 1996, we are among the few who are working on pure FEE based model!! We give full liberty to our clients to follow the same at his will and time. Most importantly, we respect you and your money. So, we give you the choice to follow us or not!! We do not bargain or use fear factors to join or follow us.

Our mission is to make you financially independent. So, you do not have to worry for Money any longer.

We always request our clients to be with us as active investors for minimum 3 years and maximum 7 years. Our focus is to provide right financial education to our clients. It’s like nurturing them in a chaotic market like this.

What Next?

There is no free lunch. You will have to pay in cash or kind. Find out proper adviser and pay him in cash – so you can come to know the actual cost.

If you like our Transparency and Track Record, you can approach us for investment guidance.  I assure you, you will TRUST us for life.

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Live With Passion…Invest With Passion.

Hitesh Parikh.