In past couple of months I have realized the kind of ride that these financial institutions take their consumer for!
A Mutual Fund is supposed to have the best financial brains working on the portfolio but turns out that I got far better returns by investing directly in stocks as compared to the so called experts! In last couple of years when the market has been swinging like crazy, I managed to maintain my portfolio in the green while the mutual funds I had invested with, their NAV was lower than the money I had invested with them! Now surely something must be wrong here. I am sure they would have a lot of excuses and “logical” reasoning and lot of ‘fine print’ that explains it all. The most peddled story of course is that Mutual Fund is a long term investment. But then I have an investment which is long term and it is not exactly proving this point either. Don’t get taken in by the claims they make about the past performance of the funds. Here and now counts and it tells me that the common man is getting fleeced day in and day out. But I guess that is how they make all the profit since they have no knowledge on how to make the profit from investing the client’s money well…
The private insurance companies are even worse. They fleece the customer under the garb of fine print (which a common man can never ever figure out… if he could, he would either be a big time lawyer or own an insurance company himself)
Typical example and this company is Aviva (kal par no control). If you were to take a policy with them and for some reason decide to withdraw in say less than 3 years, they will return less than 50% of the money you had given them! am simply aghast! Your money would simply go up in smoke which comes out of your ears, if you were to have discussion with them on why they should make so much of profit from your money… Insurance is about money for the rainy day (no one buys a policy because he or she is going to die) but if the rainy day were to happen, you will be left with no roof over the head… Imagine what would happen if you were to die… people left behind would have a miserable time trying to get the money out of the tight fisted companies.
I have decided that at the end of the day… will not invest anymore in mutual fund.. would rather have the money parked in the bank at 5% and for more returns, would invest in stock market… at least if I lose the money… it would be my fault and not some Fund Manager who makes twice the money I make and still has no clue.
Insurance policy would only be with Life Insurance Corporate of India… They never cheat and never fail to give your money back!
So all you out there… wisen up… don’t get taken in by fancy advertising and glib talk… or if you do so.. at your own peril because the fine print would always absolve these companies of any mistakes or wrong doing.