Archive for the 'Investment Myths' Category

life insurance simplified: Policy illustration

There is a document which many of you would have signed without applying much thought. It is called the policy illustration. For about 99% of the people who buy life insurance and about 100% of the people who sell life insurance this document makes no sense – it is a waste of paper. Money mantra [...]

Buy Index funds…

The number of people who advise investors to invest in Index funds is now increasing. Of course many of them are victims of the Great American media program. As long as Prashant Jain, Naren Sankaran, Nagnath, Sukumar are managing funds for me for a 2% fee why should I ‘index’ my portfolio? There are many [...]

2 cats and the Monkey: The Amfi story

There is an old story of 2 cats getting a piece of bread to be shared amongst themselves. Since the cats did not know how to share it, they decided to go to a monkey. The monkey agreed to play the arbitrator. He breaks the bread into two pieces – then he finds one is [...]

How to create a truth

It is quite surprising that there is a BIG rich much higher stake financial stake life insurance industry which is being made to look like a villain. The Mutual fund industry is supposed to be a good one which charges much lesser than the life insurance industry. Amusing. Ask a distributor, it is far more [...]

Mutual fund commissions vs. Unit linked plan commissions

Continuing my dialogue series… Journo: Subra do you not think the life insurance guys get pampered? Subra: Why do you say so? Journo: 40% of the contribution as a commission is too much, do you not think so? Subra: What about products with 122% commission? http://www.subramoney.com/book-written-by-me/ J: Not possible in the financial service industry…..at least [...]

Buying anything…and buying financial products…

Suppose you are hungry while roaming around in a mall (or a road), what do you do? Largely you eat at the nearest attractive joint. Correct? Well if you had a ‘food planner’ he would advise you – See your Goal statement. You are hoping to lose weight, so curb the hunger. This hunger is [...]