When the guy/ girl selling “financial planning solutions” comes to your house and you happily part with the cheque is it her fault for asking or your fault for giving?
This is a question I would like to ask all people who complain “I have been mis-sold to”. It is ridiculous that suddenly a retired petroleum engineer and his spouse (a home maker) have suddenly understood endowment, unit linked plans, mutual funds, real estate PMS, equity PMS, hidden charges, surrender charges, upfront load, bid-ask spread, and have then bought the product. Most of the people who sell do not know some of these terms, so the buyer knowing these terms is surely out of question.
So why do people buy?
Ego. Their ego does not allow them to admit that they do not understand the product, the suitability of the products, the structuring, etc. Also they convince themselves if a nice big organisation is selling it and the product is “approved” by SEBI/ IRDA (btw sebi does not approve any product) it must be a good product.
The other reason is “If I can decide to buy a Rs. 1 crore house, a Rs. 20 Lakh car etc. WITHOUT any advisor, why should I need an advisor for Rs. 50k a month SIP in a unit linked plan?” kind of attitude.
The third reason is they do not know whom to ask.
So God bless the uneducated (hurts?) buyer. Let him not crib about mis-selling. It is all about mis-buying.
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