Cover Story

Cheated by mis-selling
Unknown to most investors, financial products of all types are being brazenly mis-sold. Find out if you are already a victim and how you can avoid becoming one.Credit cards: Something for nothing?Insurance: Expensive and inadequateHow to make an informed choice

Ulips: Taking risks to cover risks
Ulips are arguably among the most popular investments today. But has your agent told you that there’s a flip side? Worse, has he even told you that you have bought a Ulip?
Equities: Buy 5 times your money's worth
If that’s what your broker tells you, without explaining that you can lose everything in a few hours, he’s mis-selling. Stocks can be rewarding, but if you are ready for the rigour.
Insurance: Expensive and inadequate
In their rush to make commissions, insurance agents ignore that the primary purpose of insurance is the financial security of dependents—something you must not forget.
Mutual funds: Don't diversify your problems
Listen to your agent’s recommendations on mutual funds—but do your homework before you hand over the investment cheque.
Credit cards: Something for nothing?
It’s convenient and hugely useful, but there’s no such thing as a free credit card. The company will get its money in some form or the other.
Defeating mis-sellers
It’s no secret that the broker community has more rotten apples than good ones. But it’s difficult to make out who is who till it’s too late. Yet, there are ways to avoid being taken for a ride. Here are six things for investors to do.
Are institutions at fault as well?
Commissions are structured in such a way as to promote instances of mis-selling. Here are key incentive rates and some expert opinions.

2008-06-12

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Stocks

Stock watch as on May 20, 2008

We tie up with Trisys Research to identify stocks that aren't in the limelight, but have the potential to give high returns.

Waking up to China

It’s a collective failure on the part of investment managers of India that they have been painfully slow to offer investment options in China and other Asian countries.

Exploration and metal stocks perform well

Exploration and metal stocks are in demand, with many of them among top performers.

Getting ready for a rainy day

In a dramatic move to reduce risk, Dipen decides to sell off a big chunk of the holdings of the two portfolios and sit on cash till the weather clears.

BASICS

Agent honesty test

Here are 20 key questions across four financial products that brokers should be asking you.

Mutual Fund

'Don't focus on one asset'

Don’t have a bias towards a particular asset class. Diversify and have goals around which financial plans are structured, and monitor them regularly.

Benefit from banking growth

Money Today and Plexus Management evaluate new funds for you. This time it's the Reliance Banking Exchange Traded Fund.

UTI's Ulip plan performs well

UTI’s Ulip plan commands huge investor confidence with its AUM substantially more than the other funds.

The ABC of funds

Here's presenting the first of a 26-part series on mutual fund investing. If you're a new investor, use this series as stepping stones. If you've already started investing, this could show if you're on the right track.

Sector Scenario

Piping in profits

The ever-increasing demand for oil and its transportation is fuelling the growth of pipeline manufacturing. R Sree Ram picks out some attractive stocks.

Expert View

Riding the greenback

Zensar has projected sales of Rs 950 crore and net profits of Rs 80 crore for 2008-9 against an exchange rate of Rs 39 to a dollar. The dollar has now crossed Rs 42. It is an opportunity to be grabbed.

How investors are misled

What an investor needs is not important. What an advisor wants to sell gains precedence. Who loses in the bargain? The investor, of course, who gets something he didn't want or even need.

How to make an informed choice

It is dismaying that the level of research that goes into buying a mobile phone is far more than that made to purchase a life insurance policy. Life insurance is critical and deserves more attention.

Upfront