Skip to main content

Simple ways to safeguard your hard-earned money

 

THE complexity in the financial world has increased and this also requires additional work on the part of the individual investor. One aspect where the investor has to remain ever vigilant relates to frauds that are taking place all around them.


Investors should be extra careful with their investments because there is a chance of losing the hard earned money that they have accumulated. There are several points that an investor should follow.


Given below are a few of them that can help tackle the situation in a better manner.
Curb the greed: One of the first things that an investor needs to do is to curb their greed to generate higher returns. This is actually the starting point for trouble for a lot of people because they get caught in this entire effort to generate a higher return and then are at a loss of how to manage the situation.

The most common way that people fall into a trap is by being promised a rate of return that is so high that it cannot be believed.


In many cases this is also not possible because the entire transaction is a fraud.

So, if there is someone who is offering an assured 25 per cent per annum it should make the investor question how this is possible. Anything that is higher than what is available in the market should be questioned, because there might be some hidden catch.


Keep a check: This is another lesson that investors need to learn because no matter what is the quality of the service being provided there has to be some personal effort.
There should not be a situation where the investor will give all the responsibility to someone else like a relationship manager and let them manage the entire funds without asking any questions.

They will need to make their own checks to see that the right process is being followed and also that the investments are genuine. This will include knowing whether the product that they are investing in actually exists and what are the exact features of such a product.
The reason behind selection of a specific instrument also needs to be known, so that they are able to see the logic in the entire effort.


Don't sign blank documents: This is a very important lesson that every investor must learn from the recent scam involving high net worth individuals. They should not be signing any blank document and giving this to officials of any service providing firm. The risk here is that this can be misused because of the fact that the documents can be used to undertake several transactions from the account of the individual without their knowledge.

There is a big risk when any documents including forms are signed without reading them. The signature signals acceptance of the conditions that are related to the transaction even if the individual has not seen them. At all times the documents and forms should be filled in front of the investor and they should also keep a copy of them, so that they are able to cross-chek what exactly they had signed when required later.


Keep multiple contacts: When it comes to dealing with any institution ­ be it a brokerage house for equity transactions or even a bank ­ there is a need to maintain multiple relationships with the employees, so that the investor knows whom they are dealing with.

In many cases, the only person whom they know is the relationship manager, but this is not enough.


They need to develop contacts with other officials in the banks, brokerage, mutual fund or other entity.

They will also be able to know if they are on the right path because they can always seek the help of someone else in case of need. This also provides an additional layer for protection from a fraud by individuals related to the financial services provider.

 

Popular posts from this blog

Mutual Fund Exit Load Changes

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300 Mutual Fund Exit Load Changes AMCs don't communicate about any change in exit load directly with investors, but do update on their website   The exit load applicable to your investments is the load which existed at the time when you invested in the particular fund. Any subsequent changes in the exit load will not be applicable to your investments.   However, Asset Management Companies ( AMCs ) periodically publish addendums in the newspapers, which state any change in exit loads of specific schemes managed by them. Such changes are also posted on their websites. However, a direct communication to an investor is not made, considering the costs involved in doing so. In their own interests, investors should not only track the performance of the funds they i...

Birla Sun Life Mutual Fund Launches Birla Sun Life NIFTY ETF

Birla Sun Life has launched a new fund namely, Birla Sun Life Nifty ETF, an open ended exchange traded fund. The new fund will be open for subscription from 4th July to 18th July 2011, at an offer price of Rs 10 per unit. The investment objective of the scheme is to generate returns that closely correspond to the total returns of securities as represented by S&P CNX Nifty, subject to tracking errors. No exit load will be charged under the scheme. The performance of the scheme will be benchmarked against S&P CNX Nifty and will be managed by Satyabrata Mohanty.   -----------------------------------------------------------------   Also, know how to buy mutual funds online:   1) DSP BlackRock Mutual Funds: http://prajnacapital.blogspot.com/2011/05/buying-dsp-blackrock-mutual-funds.html   2) Reliance Mutual Funds: http://prajnacapital.blogspot.com/2011/06/buying-reliance-mutual-funds-online.html   3) Birla Sunlife Mutual Funds: http://prajnacapital.blogspot.com/2011/...

Atal Pension Yojana contribution Tax Benefit for spouse

Contributions to Atal Pension Yojana (APY) are eligible for the same tax benefits as the NPS. This means that the contributions can be claimed under Section 80CCD (1B). The current limit for Section 80CCD (1B) is   Rs   50,000, over and above the   Rs   1.5 lakh limit under Section 80C. Section 80 CCD (1) is a different one, meant to cover employers' contribution towards NPS . You cannot get tax benefit by investing in the name of your spouse under Section 80 CCD . ------------------------------ ----------------- Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds Top 10 Tax Saver Mutual Funds to invest in India for 2016 Best 10 ELSS Mutual Funds in India for 2016 1. BNP Paribas Long Term Equity Fund 2. Axis Tax Saver Fund 3. Religare Tax Plan 4. DSP BlackRock Tax Saver Fund 5. Franklin India TaxShield 6. ICICI Prudential Long Term Equity Fund 7. IDFC Tax Advantage (ELSS) Fund 8. Birla Sun Life Tax Relief 96 9. ...

Mutual Fund Reivew: Birla Sun Life Asset Allocation Conservative

Birla Sun Life Asset Allocation Conservative has numbers on its side to prove its credibility… Don't be surprised to find this Fund of Funds ( FoF ) in our recommendations. It has earned its place. And despite the difference in the structure of the product, there is no arguing with the numbers.   Of the total 6 years of its existence, the fund has been among the top 10 funds in its category in four of them. Last year it put up an average show and the only year it underperformed its peers was in 2008.   One aspect to look at when investing in an FoF is the expense ratio. The expense ratio of an FoF is capped at a lower limit of 0.75 per cent (2.50% for an actively managed fund). However, the FoF not only has its own expense (though lower) but even the expense ratio of the fund it is investing into. Fortunately, the fund manager takes that into account. "Expense is one of the important criteria used for fund selection and is the main reason for our investment in BSL Ind...

Short-Term Investment Options in Mutual Funds

Mutual funds offer liquid funds and ultra short term funds in the debt category, which are suitable for short investment periods. Ultra short-term funds were earlier known as liquid plus funds. Liquid funds invest in money market instruments with a maturity of 91 days or less. However, there are no such restrictions for ultra short-term funds. Who should invest in these? These are open-ended schemes. Investors with a short investment horizon or with surplus cash and low risk appetite should look at these. These could include corporate as well as retail investors. Those interested in staying invested for less than 15 days can opt for liquid funds. Retail investors who want to remain invested for two-four months, can look at ultra short-term funds. The short duration for both liquid and ultra short-term funds shields them from any interest rate volatility.   What kind of returns do they offer? In terms of an investment period less than 15 days, these funds are comparable to a ba...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now