Have you wondered why people make mistakes while buying financial products? Well here is what I think:
1. Products are complicated: Most financial products are complicated. This is absolutely necessary so that the charges can be well hidden.
2. Salesmen are always in a hurry: This is easy to understand. They are paid for closing, not impressing the customer, not educating the customer, not increasing his awareness, …just closing. So he will target closure.
3. Ego prevents people from admitting that they do not understand the product. Why women will not understand illustrations and men will not ask for explanations (my next book title!).
4. If I can buy a house for Rs. 1.2 crores, a vacation for Rs. 5 lakhs, a car for Rs. 25 lakhs – I really do not need some ‘financial planner’ who will tell me how to invest Rs. 100,000 a month for 30 years. Only problem is this figure will be far, far bigger than the house, vacation and car put together.
5. Pressure from classmates, friends, relatives: Sales people are recruited based on their ‘natural circle’.
as I think of more…will write more!!
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