There are so many products in this global financial market that sometimes a financial advisor feel more like a bouncer thanblog anything else……..Sharing some of the pitches been made in the past and the on-going practices,

  • Oil and Gas Limited partnerships. (If you being cut in on them, the wells are dry.)
  • Principal protection funds. ( They are always come out after the market’s been killed and cap your upside on the recovery)
  • Insurance broker selling asset management. (Does your hair – dresser also repair the roof on your house?)
  • Stock broker selling guaranteed – return equity linked annuities. ( Yeah that’s end well)
  • Reverse convertibles and other structured products. ( They will pit you against both the market and banker – good luck)
  • Brokers with one day left in their pay period ( They will call you with the news that ” we need to rotate and move things around”)
  • Anyone who claims to have “system” (Why ? because there is no such thing, and if there were you would be the last person to hear of it.)
  • Anyone who called himself financier. ( He is guaranteed to be full sh*t and probably wears a suit and dress shoes with no shocks)
  • Financial advisors who self-clear or self-custody client funds. ( Always be sure that there is another part of eye on your money preferably a large corporation’s)
  • Managed future funds. (The fees are so over the top that your actual return will look nothing like the advertised returns.)
  • Movie instruments (The latest telemarketing scam, No studio worth investing in is going to unleash an army of cold callers to raise funds.)
  • Closed end fund IPOs. (These funds should only be bought at a discount in the secondary market. Within 90 days of the IPO, the “penalty bid” phase ends and broker can freely dup their shares while keeping their commissions – you will be down 15% in a blink.)

And many more classic cases for the time being in India ULIP is the most misselling product without any doubt 😉

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