Funds encoureage churning to meet targets while the incentive to sell insurance is too high

Recently, I met a friend who is in the business of distribution of mutual funds and life insurance. We were discussing issues relating to selling of both and some interesting facts emerged. During a recent NFO, the regional sales head suggested to my friend that he make investors switch from existing...

It is not easy to create proof of identity and address that are acceptable to banks, brokers, SEBI and other regulators quickly.

For the common person, the most dreaded thing today is Know Your Customers or KYC. For every kind of financial transaction, whether mutual funds or stock trading or even opening a bank account, one has to produce a proof of identity as well as proof of address. In a...

Consumers are “protected” while buying matchboxes but not when they buy a property with their life savings

When we buy something, we look at the printed price, whether it is a chewing
gum or a matchbox or a school textbook. Law demands the printing of maximum retail price (MRP) on every product. Now, consider something that we buy either once or a few times in a lifetime, using our entire...