The ruling elite need a constant supply of clerks for offices and sepoys for the army. So the Englishman designed our education system and it still works perfectly for the UPA and the BJP. Most of us in the middle class cannot really break away from the school education and do something different, can we?

Let us see what the Financial service sector does to keep us ignorant, ill informed, ….etc.

1. Hiring top class communication experts to fool us: The communication and body language experts write copy, decide where to locate what news item in the press, on tv, etc. They brilliantly manipulate data.

2. Get the Regulators to speak in a caring tone, but deliver toxins. Look at the changes that ULIP has gone through in India! From being a very customer friendly product (2004 you could top up a ULIP up to 20% of the sum assured) NOW YOU CANNOT. All changes were supposed to ‘benefit’ the common man. Brilliant manipulative communication skills.

3. Freeing well paid ‘experts’ to come on TV to manipulate you. Why do professionals come on Television? who pays them? what language do they use? Have you ever wondered? Why does a person spend 5 hours a week on TV?

4. Scare mongering the common investor to REACT IMMEDIATELY in panic and do completely wrong things! Even doing a survey on a day when the market has dropped 4% is MANIPULATIVE.

5. Pay tons of money to manipulate the system and create vested interests! Have you wondered how profitable banks are just because a few million of us leave a few thousand rupees in our savings bank and current accounts? And those accounts which we ABANDON just because it has only Rs. 2000 as balance? or Rs.350 as balance? Suits the banks!

6. Fuel our anxiety – leading us to hyper trade? and despite losing money believe we are great traders!

7. Make millions of agents, and sell through every bank branch: Look hard and you will find a million victims in this country of a billion people! Most of the agents and Relationship Managers have NO clue that they are not the looters, but the agents of looters.

8. Keep defective product structures ON for so long that people believe that the product is good. Look at a Classic Endowment product, it is a structural defect! It is DESIGNED to give you a NEGATIVE REAL RETURN immaterial of how long you propose to hold or hold. And the Government says Viaticals is illegal. Brilliant manipulation.

9. Constantly sow doubts about long term uncertainty, create a highly volatile market, – thus getting people to think short term instead of long term.

10. Creating a compensation system which ENCOURAGES short termism! Imagine a 40% upfront commission for a product with a 30 year premium payment.

11. Making the Government a partner (or in case of LIC, the full owner), the regulator ENSURING that people do not understand the difference between GUARANTEED RETURNS and REAL RETURNS – 4 generations of investors have lived through this!

12. Self serving ‘Investor Education Programs’ – this calls for a book, not just a post!

13. Creating new products to beat the legislation. When Sebi said ‘no entry load’, India’s private sector banks created PMS schemes and got the HNI to part with tons of money.

14. The managers who handle your Provident fund, NPS, etc. – If you meet them YOU are likely to stop putting one more PAISA into those funds. Honestly, I have dealt with them, and have NEVER come out impressed.

15. Employ a hit and run truck driver to get rid of Subra. Not sure if I am significant enough for them to worry about me!! Just my ego!

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  1. Hi. This was a good piece of notes provided the people who read this understand, change their attitudes. In today”s world we are driven by status symbols rather than the reality. I my self was a victim of all the stupid schemes. I have come out of all the schemes and holding a pure term insurance without any frills and a medical insurance. Even the people from IIT’s and IIM’s are hired to dupe the entire population. You were right, when we see the so called experts on TV talking on investments, they create an artificial atmosphere on behalf of sponsers, invariably, like sheep others will follow them. Now this has reached Regional TV channels also. Today we have many degrees and certificates, but no common sense at all. Gone are the days when we used to go out and play during the holidays from morning to night sometimes even without water and food ans still come back home with lot of energy. Just a foot note – YOU ARE JUST RIGHT – THIS IS A GOVERNMENT SPONSORED CHEATING PROGRAM, Dear Surmanyam – I read your postings everyday.

  2. In a country of 1.25 billion, the real problem is only few thousands read subramoney. I’m one from these few thousands who are trying hard to make their own way among all this chaos. 🙂



  3. “9. Constantly sow doubts about long term uncertainty, create a highly volatile market, – thus getting people to think short term instead of long term. ” — Priceless!

  4. Refusal to think is the biggest enemy . . . because, middle class is most comfortable with the Monkey See, Monkey Do attitude in life.

  5. Not sure if you know, but they are now CHARGING for these so called “Investor education program” LOL. It is like me paying maggie to watch their ad and trying to escape from very chipku sales guy. 🙂

  6. Dear Subra,

    Can you please give the link to any of your article which might speak of the difference between “Guaranteed Returns”, as in a ULIP, and “Real returns”.


  7. You take care, Subrabhai.
    Now I have a grouse which I’m going to crib about because the powers that be read your blog. 🙂
    This one is about so-called MF agents. Now say in 2000 you were naive enough to use an agent, and he’s getting rich on trailing commissions.Say by 2005 you get smart enough to go direct. But that no service agent will continue to get a complete account of your holdings under that folio no, including the direct investments. What a joke re client confidentiality?!

  8. Have been a great fan of yours and reading your posts from last 1 month.
    Regarding point 14, I wanted to know whats the in, as long as the return is fixed by govt, does it matter who is managing…or are you hinting that if we have had better managers, they could have easily offered more than the measly 8.5-9 offered as of now.

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