What I mean by corporates? I mean insurance companies, Mutual fund companies, Banks, NBFC..etc
One day I met a CEO of one of the biggest mutual fund company in India. While in discussion he said “Financial services is one of the most corrupted business after government services”. I too know that but listening that openly from that kind of a big person is a bit shock.
Yes that true. Here companies try to sell you something. You may want to buy or may not. But they sell. Doing sales is not a problem but making people buy unnecessary things/loss making products is a problem.
“Financial Illiteracy is the biggest asset for Corporates”
If it comes to financial services; Most of the people are financially illiterate. Its biggest asset for banks, insurance companies, mutual fund companies. All these companies have big heads related to marketing and sales; 100s of people work. They have crores of budgets to spend. Few companies have huge agent advisor network. So they can convey what ever they want in convincing way.
But in reality; The end results which we get in real time are different from said results at the time of buying the product. Because of these lakhs of people loosing money in crores. I started explaining those in my inside videos.
How these companies cheat you? When you trying to do a fixed deposit bank people ask you to buy insurance policies; When you trying to insurance/protect yourself from unnecessary events insurance companies sell their investment or saving plans for their benefit. When you trying doing a 10 years SIP in mutual funds; a post office uncle can guide you savings scheme in post office by telling disadvantages of mutual funds…like this many.
All these are called MISSELLING.
If you have any doubt on me; Search in google “Mis selling SBI BANK”; “Mis selling HDFC bank”, “Mis selling LIC”, “Mis selling ICICI”…etc. Some information you may not be able to find in 1st Page of google; then go to 2nd page and 3rd page.
So becareful if you have money; you bank knows how much you have. How many transactions you doing. So based on that they may offer a product which give them high commission instead of benefitting you.
Some times they directly sell a product like insurance policy; some times they may offer a free credit card with N number of benefits. Later you may need to pay (may be from 2nd year onwards) yearly fee; Sometimes they sell card protection plans for your debit card or credit card.
SO becareful while taking a financial decision. My suggestion have a financial planner who have knowledge on all these things and make him work for you. Thats easy thing for getting more benefits.
As you may aware How insurance protects you incase of accidents the same way a financial planner will protect you from these kind of financial mistakes. If you thinking like “I am suggesting these because as i am a financial planner”. Wish you all the best…! 🙂