Moneylife Foundation continues its successful series of seminars on financial literacy. The 101st workshop on ‘How to be 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 returns

Moneylife Foundation conducted yet another successful, informative and highly interactive seminar on ‘How to be Safe and Smart with your Money’ on Tuesday (10 January 2012). The event, which again witnessed a packed audience, was held at the Moneylife Knowledge Centre.

Sucheta Dalal, managing editor of Moneylife, advised the audience to stay away from schemes that promise extraordinary returns. There are various chain marketing schemes which operate at every level in the country and cheat even the poorest of people. Ms Dalal warned that companies like Amway, Tupperware, Herbalife are also examples of pyramid schemes. According to research, less than half the people are able to sell and make money and end up blaming themselves and not the company.

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% mare 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 emphasised on how one should not lose money to banks. 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 also touched up on area 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 participants were taken through a four-stage process to investing. Unlike durables there are much more intricacies in a financial product that one needs to pay attention to.

Mr Basu also touched upon five key planning concepts by which investors can plan their investments. Examples were shown on how one could use the power of compounding to their benefit. 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.

This seminar on ‘How to be Safe and Smart with your Money’ has been conducted by Moneylife Foundation in various locations across the country. If you have not become a member of the Foundation yet, please visit www.mlfoundation.in for more details. Membership is free of cost, and Moneylife Foundation members also get access to such informative seminars and can utilise the state-of-the-art facilities at the Moneylife Knowledge Centre.