We are in the cowboy stage of financial advisers. Let us say something like the 1970s of the stock exchange or the 1940s of the banking industry! Let me list a few: 1. If you do not understand equity markets stay away: Correct advise only if you are so damn rich that you are not […]
Here is a fictitious conversation between an asset-manager and an asset manager’s regulator. Asset Management Association: Good Morning, Mrs. Regulator. R: Good Morning, please take a seat. AMA: Sir, our business is not profitable at all, we need some help. Regulator: Oh yes, the Sarkar was also telling me that we need to help you. […]
Well Sebi says the fund industry will be able to charge 2.75% p.a. as fund expenses. Since you will bear the service tax, brokerage, etc. assuming that it will cost you about 3% p.a. is a fair call. This is charged on a weekly basis, so you need to take the impact of weekly compounding. […]
I do many of these things and keep wondering how to charge for it…However if you do have a FA he should do the following for you: 1. Do not choose that instrument: He should have the guts and knowledge to say what kind of financial instruments YOU as the client should not touch. This […]
“Mutual funds are no longer profitable”; “It is not worth being in the life insurance business” – you have heard this and variants of this from the ad driven media, right? Well the truth is not very close to this. Let us take the case of Hdfc Mutual fund. Given the huge AUM already under […]
Recently when a friend asked me what are the risks in unit linked plans…I said Well Max New York Life has started a campaign saying “Our agents are different”..well I wish they say this to the client BEFORE the client signs up: Sir the following risks exist in a Unit linked Plan: 1. Buying […]
A few reader queries and their answers: 1) Do you think pension policies from insurance companies make up for a good investment for availing pension? Why or why not? Answer: No. They do not. First of all thanks to some Quixotic regulations no life insurance company is selling a pension plan, so this question […]