All Bank Relationship managers are to grab all your wealth like village money lender and leave you with nothing, by offering you investment avenues which will go down soon as they take off, because the market risk is borne by you on your head and you are not the only person in the basket of relationship manager. The more you take the risk the further the emis are increased on any loan. There is no point taking risk with banks.
I think one should listen to these people and act according to your status, ie., your risk taking capacity/investment capacity. this is most important then acting according to others wishes
she mentions that she made a big mistake investing in mutual funds and goes on to say "my bank relationship manager to make heavy investment in policy of Bajaj Alliance" she has put her money in an insurance policy and not mutual fund.
Re: 'I made a big mistake investing in mutual funds'
by prem k on Oct 25, 2011 02:47 PM
I dont think that any insurance policy would have premiums running into several lakhs for individuals as she has claimed. Insurance companies in India are highly conservative and ask you for a complete medical checkup even for a cover of a mere 20 lakhs. There is something called as ULIP which is supposed to be a mix of mutual funds and insurance. She is referring to it. It is a dud scheme with very high costs and long binding periods, but most agents tend to sell you these ULIPs by promising some impossible returns
Re: 'I made a big mistake investing in mutual funds'
by S S on Oct 25, 2011 05:41 PM
There are market linked policies that are essentially taken with a return on investment perspective rather than protection. And yes BAJAJ ALLIANCE are cheats with probably the worst advisors/relationship managers, I have even complained to their CEO to no effect so please never invest with them
Very good write up and a message for all not to trust your Relationship Manager blindly as they are the one who for small incentive gains will botch up all your Mutual Fund investments and will then take a change of job in some other Bank
Re: Don'T Trust your Relationship Manager Blindly
by Kuldeep Khatau on Oct 25, 2011 02:15 PM
Shibani kashyab is definately not financial savy and thus if she says she keeps track of the markert god knows what she means. She Named Bajaj Alliance as a Multual fund but that seems to be a ULIP policy where the upfront charges were as high as 80% in the first year. BANK relationship managers will always do this to meet their REVENUE targets from exisiting customers and get higher incentives and increaments. SEBI and IRDA should ban these banks from selling these products as highest mis-selling occurs from trusted bank relationship managers......SHIVRAJ PURI of CITI bank is one of the examples of bank relationship managers duping customers....
Re: Re: Don'T Trust your Relationship Manager Blindly
by prem k on Oct 25, 2011 02:54 PM
If RBI does that, every private bank in India has to be shut down.
In fact, RBI should not intervene accept providing advisories to public. After all, people should learn and some sort of "democracy" should throw out these culprit scheme by "bad" word of mouth, because if RBI bans one, some other will crop up. Ultimately if people become financially savvy, such schemes will go out of market. At present, every ULIP in the market is a dud and stock markets have high levels of insider trading. Parking money on FDs is a losing proposition as the inflation is much more than interest rates.
As long as people are not financially savvy, it is going to continue. After a few years when people burn their fingers, more efficient schemes will appear in the market. Till that time, those who have burnt their fingers should manage their money on their own and not trust mutual funds and ULIPs
Re: Don'T Trust your Relationship Manager Blindly
by Devendra Shah on Oct 25, 2011 03:51 PM
I agree that Relationshup Managers botch up the investments. My relationship manager at ICICI managed to push me into ICICI pru life fund with a hefty premium, which I am regretting now
