In today’s time Discount and Sale is buzzword and many a people, almost all, are driven by cheap (Discounts) advertisement by online marketing companies like Big Billion Day, Great Indian Sale, etc. Similarly, in Financial Services areas like Equity Broking, Insurance, Mutual fund, etc. many companies like Zerodha and others tempt new blood who are young and new to this field.

They attract them by giving lucrative offers:

  • Zero brokerage
  • Earn per day Rs.50,000 Amount by getting confirm trading calls and
  • Learn technical knowhow and many more things...

But as many of them are new entrants in this financial world and most of them don’t have complete knowhow and experience on companies, they just follow someone’s guidance which is called (Tips) in common language and trade…...

Greed and making fast money attracts them and they start trading with half-baked knowledge or technical knowhow. The harsh part is when they get losses which are so high and unexpected for them that they are really put on back seat. In their early earning and fighting days, they are burdened with debt (losses) and some of them are forced take a harsh step, which could have been avoided. click here for one of such. Forbes : 20-Year-Old Robinhood Customer Dies By Suicide After Seeing A $730,000 Negative Balance

Moral of the story is one needs a helping hand (financial experts) all the time. There is difference between Trading and Investment. There is no way for making fast money

Likewise, there are advertisement by policy bazaar who tempt by providing discounted (lower) premium and let say easy means of buying. But as many of us till now has not came across the claim settlement.

Let’s understand and say you have bought mediclaim via online and say you got heart-attack. During admission and before getting admission, there is a panic situation for the family members as they have to take decisions regarding the treatment and many similar things unknown for many. At that time, hospital will also ask your wife or relative to complete many formalities for admission, mediclaim, etc.

  • Is your wife or relative aware where the mediclaim policy is kept?
  • Are they aware of the room limit mentioned in the policy?
  • Do they even know from which company you have bought mediclaim and where mediclaim card is kept?

For cashless, many formalities have to be done at the same time when the patient need you most

So now you think whether that policy will be helpful at that given point of time or not? Same is with life Insurance too after death there is a formality for claiming and also your wife need to know of details of policies taken by you.

If you have got a Right financial advisor, he will come forward to help you and do the formalities and avail you the claim

Moral of the story is to get few discount you can lose the entire claim amount

For Mutual Fund, many companies like ET Money and others have started selling online and also there is direct fund buying options. Benefit of buying direct fund is to save on charges if around 1% p.a. Many of the investors are tempted by comparing that they will have 1% saving over 25 years and these 1% translates to big money in longer duration.

Some points to consider:

  • According to AMFI data, an average span of mutual fund investor (folio) is 4.5 years and so we believe, it doesn’t make sense.
  • Secondly, they show attractive returns delivered by the scheme in the past. By which investors get attracted and invest without knowing the risk involved in that fund. For e.g. it might be a small cap fund or a sector fund. You might end up investing in scheme not suitable according to your risk profile
  • Reality of people who has started online investing (direct) is that Almost 80% has stopped their SIP or redeemed their funds in losses in this last 3 month of volatility.

So, investing in mutual fund or equity market investor has to be handhold. Because there is fear and greed in investing. Hence an expert advisor is needed to control human behaviour