If you are in the finance business, today you have to talk about two very important things:

Financial Literacy and Financial Inclusion.

What you do is not so important! I have heard of an organisation where a person in a grievance cell also has targets! When the customer comes complaining, REPLACE the product, and make sure he/she does not go to the regulator!

SIP is a word which I thought everybody understood – but the financial services industry’s ability to reinvent itself is amazing. So daily SIPs, weekly SIPs, were introduced.

Then SIP in direct stocks was introduced – so a ‘why do you want to pay fund management fees’ …then a lot of nonsensical shares were given as a ‘portfolio’. Now the mantra is ‘averaging’ on a share – so that you keep buying more and more as the price falls.

Then of course they introduced ‘Safe Investment Plans’ – a ULIP which kept your family safe – even if you did your money will not be safe….because of the charges!

So if there is a fight between people who are teaching vs. people who are selling – the chances are that the people who are ‘educating’ or ‘teaching’ stand  no chance in hell. I think the budget of the ‘teachers’ vs. ad budget of the sales guy is 1: 50 billion….comments welcome!!

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  1. Subra,
    Investors have a long memory. We learn from our past mistakes. Investors can differentiate between people who are selling and those who want to educate without any direct benefit to themselves.

    It is still possible to invent a more customer friendly product which appeals to the investor or fills a vacuum. Nothing against open market competition.


  2. Grievance cell has targets!~

    amazing observations

    Subra: How about a session in Delhi? pending for long. You have a big audience here.Please plan for Delhi

  3. Hi Subra,

    I read your post on wealth & when I was looking for printing, it was gone.
    It was RICH DAD POOR DAD in 10 steps.

  4. Not everyone is gullible. Those who invest their own money will learn in due course of time that there is no substitute for doing one’s own home work in money decisions. Those who can afford will buy “paid investment advise”. Some portfolio management or wealth management.

    The thing I’ll be very skeptical about is the “free advise” or “free education” that is widely available these days on TV business channels & internet.

  5. maaran,
    though it is a good idea to be skeptical about ‘free advise’,it is possible that there are business models where the advisees are not directly charged.ofcourse,caveat emptor always applies.

  6. Pravin- yup. i know what you mean. Quite possible. “Free advise” often comes loaded with “biases” & conflicts of interests. But don’t want to generalize it.

  7. this is a zero sum game some will lose and some will win! a person with fiancial literacy has a better chance of winning!!!!!!

  8. Dear Subra,
    I have a better business model. I will be a ‘fee based’ financial consultant / teacher / advisor/ one stop solution provider,(…you can add here some more….)! Then I will have on my backyard my wife/ son/daughter/father / mother as agent / distributor. Then I will some how convince and direct my ‘client’ to my backyard for further processing. It will be doubly yammy for me. Need your advise.

  9. Can you please explain me the NAV concept,

    In LIC am having 1042 units in profit plus plan .I am paying SIP Rs.1000 per month, so overall it is going to be 1.6yrs , but the NAV rate is 12.423 only.
    So what is the value of my units altogether.Please explain me.

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