Companies often send ‘salesmen’ If you think that the guy who was trying to sell you some policies the day before was a financial advisor, then you might need to rethink. These days, a lot of financial planning services in india maintain a fleet of employees who are trained to sell. They might not be financial advisors; rather, they are well trained salesmen. You should never trust the words of salesmen. These people might just be interested in meeting their monthly target!
Advisors looking for commission! Advisors who seek commission on every deal might talk you into investing more than your means. This might disturb your monthly budget, and will benefit the advisors in the long run. Having your monthly budget disturbed is something that can have a domino effect! Even if your one month’s budget goes for a toss, it can show similar effects on the coming months.
So what is a way to counter this practice? Ask your financial advisor whether he strictly adheres to fiduciary! Fiduciary is a code of conduct which means that the financial advisor will work only for the benefit of their client without thinking about their personal gains.
Hiding clauses! You will see a lot of people complaining about financial planning firms. The most common reason for complaints is that the ones complaining are not aware or have not been informed properly about the financial products/services being sold to them. As a result, it results in heavy penalties being levied upon them. In reality, a lot of firms tell their personnel to hide certain clauses so that they can mint some money by levying these penalties.
That’s why it is extremely important to choose the right company.