Make no mistakes. I do think that agents can play a great role in your life. A good agent for mutual funds, life insurance, real estate, travel, can really work wonders for your investment or travel.
Many of them are very good people with excellent knowledge of the product, customer (you) needs, planning, etc. and many of them have also played an important role in society.
However, being with an agent many a times reduces your choices and brings an element of bias. If for example an agent who sells ALL mutual funds, WILL sell you a bad fund – IF HE HAS TO GET SOMETHING from the fund house. Let us say he has a target to sell Rs. 10 crores of ‘insurance’ or ‘mutual funds’. He has already reached Rs. 9.5 crores. You have to invest Rs. 50L….It is too damn tempting for him to close this scheme with YOUR Cheque.
Apart from this, as an agent he can represent ONLY ONE life insurance company, but of course he can represent all mutual funds. Apart from this of course, he has a vested interest in keeping your money in a poorly performing fund over longer periods of time.
An agent can surely reduce your interaction time with the company – and help you get a duplicate, replace a torn policy, or generally be available in case you need to ask some question.
Interacting with the company is also not easy – you meet extremely difficult to handle kinda people, but some agents are also tough to deal with. So that does not matter too much…..
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