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Moneylife Foundation continues its successful series of seminars on financial literacy. The 118th workshop “Bee Safe and Smart with your Money” informed participants to avoid schemes that deceive investors and how to invest money in a manner that would give maximum return
Moneylife Foundation conducted yet another successful, educative and highly interactive seminar-"Bee Safe and Smart with Your Money". The event, which again witnessed a packed audience, was held at the Moneylife Knowledge Centre.
Sucheta Dalal, managing editor of Moneylife, said that one should keep it simple and should invest in just a few products. And the path to a safe future is to choose safe products. When it comes to choosing a bank, Ms Dalal said that government banks are the safest. Small cooperative banks are the ones that go bust most often and should be avoided.
One should be careful while investing one's money in fixed deposits, she said. Banks deposits are usually safe but corporate deposits should be inspected carefully before investing. "Do not go for any deposit which does not have a legitimate credit rating," said Ms Dalal. And most importantly if the interest offered is 3% higher than bank fixed deposits, one should stay away.
On how one should not lose money to banks, Ms Dalal said that relationship managers usually work only to earn themselves fat commissions from your investments. Thus most "relationship managers" resort to mis-selling or hard selling a product. In order to be safe one should have all communication documented.
Ms Dalal advised the audience to stay away from schemes that promise extraordinary returns. She said that most Indian savers fall for tall claims and many of them fall for tall claims of pyramid schemes. Many have lost huge amounts of money in pyramid schemes such as 'SpeakAsia', 'Gold Quest', etc. There are various chain marketing schemes which operate at every level in the country and cheat even the poorest of people.
Ms Dalal cautioned the participants to stay away from plantation schemes, art funds and realty companies offering high returns on deposits. Any scheme offering 3% more than deposit rate should be scrutinised. She also spoke about the various internet scams that are usually after your money or your identity. Ms Dalal also touched upon areas related to credit cards, insurance and credit scores.
Debashis Basu, editor, Moneylife, spelt out the various ways in which one can be smart with money and presented to the audience the best ways in which one can invest safely. The best way to start investing safely is by planning your finances, he said. Mr Basu took the audience through planning concepts by which investors can plan their investments. Examples were shown on how one could use the power of compounding to their benefit. "The best way invest smartly is to start as early as possible and save as much as possible", said Mr Basu.
Mr Basu also touched upon five key planning concepts by which investors can plan their investments. Inflation is the permanent risk and is difficult for one to avoid. The only way to overcome inflation is by smart investing. One should also understand the risk in various asset classes. The risk involved in various asset classes was explained and how much returns these assets are expected to generate was informed to the participants. How a mix of these assets could be used for different investment horizons to keep you money safe was also discussed.
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