what do you do when you get such comments / emails…?
‘Do not believe what these experts tell you. See the returns in the equity markets in the past 10 months even on an SIP basis is NEGATIVE. Do not invest in equity markets. Keep all your money in banks ONLY…at least your money will remain safe’. So true, so lovely!
Such people do us a favor. They keep all their moneys at all times with banks. Banks need to pay only 4-7% p.a. interest to these people. Then the bank can use the money to lend it to the borrowers at about 13-21%p.a. Not bad margins na?
So the market loves such people. They create margins for banks. Sadly banks are so much laden with money that they buy offices, promote large life insurance companies, mutual funds, brokerage arms, …..and create more value for the share holders (or destroy share holder value!!).
So when you see people leaving a lot of money in their banks….go and buy State Bank of India – it has all the PSU salary accounts, army pensions, …and tons of money lying unclaimed. The unclaimed but inactive accounts are a mind blogging figure in excess of Rs. 10,000 crores!!
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