You have heard all this from the BFSI salesmen. They could be in the form of a bank manager, IFA, a financial planner, insurance agent, or one more of the same breed. Here are some of the samples. The challenge is to see whether you can spot the true ones and separate it from the false ones:

 

1. Sir, you do not have the time to manage your own money, I will manage it for you.

2. Sir, you have a child, so you must have a child plan.

3. We will all retire, so please take a retirement plan form….it is India’s biggest pension providing company.

4. IN a term insurance plan you will get back NOTHING, so please take a ULIP. The returns are much better.

5. Sir if you buy from our website, MUTUAL FUNDS are free, we do not charge anything.

6. Having a nomination for your flat is enough, you do not need a will.

7. Having a will for your flat is good enough, you do not need a No Objection Certificate from your other children.

8. Sir your mutual fund portfolio is good, but we need to shuffle it once in 2-3 years ATLEAST…

9. You have medical insurance from your company, so you do not need personally paid medical insurance.

10. You have  dependent parents, your wife is a housewife, and your children are still young, you need to make a comprehensive will, now.

  1. 1. Partially true. The person will manage or mismanage is different story but lot of guys don’t have time or inclination to learn personal finance.
    2. Harmful. Just because product is named child plan, it doesn’t mean it would have his/her best intentions in mind.
    3. Harmful. Same as above.
    4. Outright lie and harmful. If i put my money in FD, i would get same or may be better returns and would have liquidity as well.
    5. True in a way. They will not charge you directly anything, but you could have taken direct plans which would be cheaper. I am too lazy to go direct and apply for each MF, so I take broker route. I take it as fee to handle paperwork.
    6. Depends on case to case. If you have only 1 heir, may be true, but generally wrong.
    7. I think it is true. Not sure if law actually recognizes such NOCs – but am not sure. As long as flat is purchased through own money (not parental money/inheritance), NOC should not be required.
    8. False. Every 3-4 years MF portfolio should be revisited to weed out non performers but no need to necessarily reshuffle it.
    9. False because of two reasons – no job is completely safe and even if it is what happens after you retire? No one will give you medical insurance then.
    10. True.

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