You could call these myths which people believe or lies which we in the BFSI have been able to perpetuate very well over generations..and people believe them…Let me list them….

  • Media houses employ amazingly competent research analysts
  • If the Regulator has approved a product, it cannot be bad or toxic
  • If a bank sells a product in the banking premises, the capital is protected
  • A good smelling, good looking, sales person will not tell lies
  • When people give a product illustration it is ACTUALLY THE promised amount that they will get on maturity
  • Mixing life insurance and investing is a great idea – especially when the regulator has reduced costs
  • You must have at least 10-15 funds if you are investing Rs. 1 crore – best way to reduce risk
  • If you keep watching your portfolio regularly, the value cannot fall (or it will actually grow?)
  • Gold is the best investment and it has given returns far superior to other assets
  • Land is the best investment – and it gives about 24% return and will do so for the next 200 years!!
  • Taxes do not matter while investing
  • Liquid funds are far more riskier than bank fixed deposits
  • Investments that are not priced daily are safe
  • Buying 5* funds is a great idea and if it slips to 4* is a good reason to sell it off
  • There is no risk at all in ESOP and all ESOPs make tons of money for those who have them. Lucky people.
  • Getting a free lunch /dinner/ trip for 2 to Goa at an investment seminar is a great way to invest ON THE SPOT.
  • Getting average returns in the markets is a bad thing. It is so boring.
  • Financial advisers who use fancy jargon are really smart. Those who do not are dumb.
  • A good Financial adviser will nicely suggest changes and keep churning your portfolio. It is a great idea
  • It is possible to time the market – you just need a great broker / adviser / luck
  • Trading Options is the surest way to health
  • Watching TV is an easy way to learn investing
  • Averaging a falling share is a brilliant investment strategy.
  • A sign of a good adviser is someone who has a nice office, nice car, and a fancy jargon
  • People talking on T.V. about the markets know your financial situation and are in a position to give advice on it
  • Equity is risky, Bonds are safe. Savings bank is still the cheapest and safest investment
  • Inflation? that is for Economists, right?
  • Milk is good for health 🙂

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  1. financial literacy is very poor in India, instead of L.K.G OR U.K.G schools its better to start financial schools at kid stage. then most of the simple financial terms are understood. in a country where literacy rates are poor,financial literacy is very very very poor, and all financial “guys’,they believe they are geniuses, and people are stupids! 99% of “fin” guys are ” suckers” except ” SUBRA”!

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