Financial advisers at banks

Most banks have financial advisers or investment advisers as they are called as part of their sales force. A lot of the personal bankers take the help of these advisers to get their customers to invest with them.

Now, a lot of people are enamored by the slick speaking advisers without understanding that he/she has a very high incentive on you signing on the dotted line.

Here are a few caution when speaking to these advisers.

1. They dont have a view to your investment philosophy and are just talking about products.
2. They are selling you a product. They want you to sign.
3 evaluate how much they understand about their product. A lot of time when you ask them a few questions on their product, they have no idea.
A recent example was an hdfc banker trying to sell me a guaranteed ulip saying that the return was 25% guaranteed. When I asked him min yrs guarantee he did not know. But a back of the envelope calculation showed 2% return- which is much lower than putting the money in a savings account.
A typical adviser.. Who is wrongly advising people.

Its not that you should not talk to these people.. You definitely should, you get to understand the new products and the market trend. Sometimes the advisers are also really good.

Always remember, its your money.. And its unto you to take up this advice.

Happy investing.
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