The Most Authentic Guide on Personal Finance and Investments


Words of Wisdom : "Try to be a rainbow in someone's cloud." ~ Maya Angelou

Warning: Please Read The Offer Document Carefully

The statement 'Please Read The Offer Document Carefully' is boldly and prominently printed on all investment brochures, pamphlets and the offer documents.

Yet, very few investors bother to go through the same. This is TRAGIC!

Because most mis-selling, frauds and disputes... resulting in lakhs and crores of lost money... happen due to this callousness and indifference.

I have absolutely no hesitation in saying that, if you are scammed, 90% of the blame lies with you.

The reason is simple:

If you leave your house unlocked and unattended, it is almost certain that your house will be robbed. You cannot blame the thieves, if you are not careful about your belongings.

If you invest without clear knowledge and understanding, it is almost certain that you will be sold a totally dud investment. You cannot blame the swindlers, if you are not careful about your money.

Of course, there are no perfect investments. But there is a difference (big difference) between "being careless" and "being unfortunate".

It is 'unfortunate' if you are hit by a car, driving on the wrong side of the road. But, it is 'carelessness' if YOU are driving on the wrong side.

invaluable-offer-document
Do not treat offer documents as rubbish. They are highly invaluable.

Thus, I reiterate my oft-repeated advice - 'Know or No'!

Either you "know" the investment, or say a blanket "no" to it.

In fact, given the infinite knowledge available at the click of the mouse — and quite often, absolutely FREE — not educating and updating yourself is an unforgivable mistake.

Besides, there are quite a few excellent books available that would enlighten you about various investments and financial products. Don't hesitate to spend a few thousand rupees in buying these priceless resources. It is a one-time investment, that will payback many (many) times over, in the future.

It is indeed most baffling that people don't mind spending Rs.300-500 on a pizza every week; and yet they hate spending Rs.300-500 on a good book just once in a year

Here, I reiterate my another oft-repeated warning - 'Do not trust ANYONE'!

Blind faith in your agent, adviser, banker or your broker is definitely not prudent. There have been numerous instances of their unscrupulous actions and behaviour. So it's best to be 'careful now' than be 'sorry later'. [Must Read: Don't Trust Your Bank, Insurance Co. Or Mutual Fund...Or Your Agent]

In fact, blind faith in your friends, colleagues or neighbours is also not advisable. Not because they would cheat you. But because, they too are (most) probably as ignorant and uninformed as you.

Further, never ever believe in verbal commitments and promises. If it is not in writing, the offer is most certainly a fakeMoreover, you have no chances of pursuing any legal remedy, if you don't have all the relevant documents with you. Therefore, you must always insist on complete paperwork.

The bulky offer documents are designed to hide the devils. The companies know for certain that 
a) you just wouldn't dare to read the voluminous documents, and
b) even if you manage to do so, you won't make a head or tail of it.

Beware! 

Don't let the THICK forms and FINE prints scare you.

Else, you will forever be haunted by the devils in the details.

Verify all the promises and offers with "independent" sources. If you come across any bouncers or googlies, don't hesitate to call in the "independent" experts, with no conflict of interest. While their opinion may cost you a few thousand rupees, I can certainly guarantee that it would save you lakhs of rupees of probable losses in the future.

I am sure you consult a qualified and expert doctor for serious medical issues. You will definitely not go to a quack or try a do-it-yourself home remedy. The same seriousness is desirable for your money matters too. Or, you could end up paying a heavy price for your casual approach.

By the way, do you know which is the best day to invest your money?

You Learn A Lot By READING... And Even More By SHARING.

Share Button

Ignorance is like a SIGNED BLANK CHEQUE... anyone can MISUSE it.

Subscribe via Email
Books by Sanjay Matai
[Click on the Pic for more info on my books.]
Powered by Blogger.

Pay Tax On Your FD Interest. Or Pay The Penalty.

If you are not paying tax on your interest income, you can 'surely' expect a notice from the Income Tax Department. Contrary to p...

Total Pageviews