You could call these myths which people believe or lies which we in the BFSI have been able to perpetuate very well over generations..and people believe them…Let me list them….

• Media houses employ amazingly competent research analysts
• If the Regulator has approved a product, it cannot be bad or toxic
• If a bank sells a product in the banking premises, the capital is protected
• A good smelling, good looking, sales person will not tell lies
• When people give a product illustration it is ACTUALLY THE promised amount that they will get on maturity
• Mixing life insurance and investing is a great idea – especially when the regulator has reduced costs
• You must have at least 10-15 funds if you are investing Rs. 1 crore – best way to reduce risk
• If you keep watching your portfolio regularly, the value cannot fall (or it will actually grow?)
• Gold is the best investment and it has given returns far superior to other assets
• Land is the best investment – and it gives about 24% return and will do so for the next 200 years!!
• Taxes do not matter while investing
• Liquid funds are far more riskier than bank fixed deposits
• Investments that are not priced daily are safe
• Buying 5* funds is a great idea and if it slips to 4* is a good reason to sell it off
• There is no risk at all in ESOP and all ESOPs make tons of money for those who have them. Lucky people.
• Getting a free lunch /dinner/ trip for 2 to Goa at an investment seminar is a great way to invest ON THE SPOT.
• Getting average returns in the markets is a bad thing. It is so boring.
• Financial advisers who use fancy jargon are really smart. Those who do not are dumb.
• A good Financial adviser will nicely suggest changes and keep churning your portfolio. It is a great idea
• It is possible to time the market – you just need a great broker / adviser / luck
• Trading Options is the surest way to health
• Watching TV is an easy way to learn investing
• Averaging a falling share is a brilliant investment strategy.
• A sign of a good adviser is someone who has a nice office, nice car, and a fancy jargon
• People talking on T.V. about the markets know your financial situation and are in a position to give advice on it
• Equity is risky, Bonds are safe. Savings bank is still the cheapest and safest investment
• Inflation? that is for Economists, right?
• Milk is good for health 🙂