When a bank or a brokerage house Relationship Manager tells you somethings, what does it mean?

1. Sir your IFA has done a good job, but see the convenience that our bank can provide you.

Awesome statement sure. However if your IFA is being compensated on the commission model, your RM is trying to take the commission from the IFA to the bank.

Nothing wrong in business, but rest assured no banker is telling you that!! And from when did Investment become a function of convenience and not of performance? Casinos are convenient too! Just go online and lose money, simple ain’t it?

2. Sir all your investments will be in demat mode. I know that you hold your investments in single mode because your wife is a foreign citizen, but we can demat if for you – and all of it will be in electronic format.

My take: An awesome lie. Complete bull. Banks have a convenient account called ‘mutual fund trading account’ – this is akin to sending E-instruction – to the fund house for buying and selling of the units. Units can be dematted and held in ONLY your name (remember your wife has not got her kyc done because of her NON citizen status? ). So the RM is just fibbing.

3. Sir you can transfer units just like you can sell shares – you do not even need a broker

My take: Lie number ONE. Mutual funds and bank deposits are NOT transferable! If you want to give me 10,000 units of your Franklin India Blue Chip units, well, you cannot! You need to redeem it, give me the money and I need to buy it from Templeton. Ask your RM in case you transfer it to somebody else, what is the procedure and more importantly who will bear the STT! LOL. really LOL.

more of RM speak later on….but read this too



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