Listen to this article
Cafemutual marked the celebration of Independence Day by launching the ‘Misleading information se Azaadi’ contest. In this contest, we encouraged MFDs/RIAs to share how they protect their clients from falling prey to misleading information.
‘Misleading information se Azaadi’ received a fantastic response and we thank each of the 27 MFDs/RIAs who shared their innovative entries. Interestingly, our judges selected four winners, against three.
“As per the contest rule, we were to pick three winning entries, however, two entries shared similarities and deserved equal recognition. Hence, we have four winners”, said one of the judges.
Here is the list of winners:
Amrita Mishra
Sharing authentic links like BSE/NSE/AMFI boosts investors’ confidence.
Every time Amrita comes across any misleading information, she immediately alerts clients by posting about it on social media including WhatsApp. Additionally, she also educates them about authentic data sources like NSE/BSE/AMFI and shares requisite links where necessary.
Ashwin Sorte from Nagpur and Rohit Grover from Thane 
Drawing analogies and sharing real-life examples help clients understand things correctly.
Ashwin shared that there is a lot of online information on market volatility. In the absence of professional advice, investors usually stay away from mutual funds due to volatility. He said, “I usually give the example of covid-19 vaccines. The vaccine injects a weakened virus to build immunity. As the virus (vaccine) is essential for immunity, volatility is necessary for taking advantage of rupee cost averaging and creating long term wealth. Further, I also tell them that MFDs are like pilots who steer individuals through turbulence i.e. market volatility.”
Rohit mentioned in his entry that deceptive messages like ‘fixed monthly returns of 5% per month via derivatives’ could mislead investors. He said, “In such cases, I draw examples based on the renowned proverb - No pain no gain, where pain depicts risk and gain returns. I use example of doing exercise. It is only after laborious efforts (pain) that people achieve their health goal (gain). So how can you get fixed monthly returns without taking any risk?”
Keval Jethi from Kutch 
Sharing long term return analysis can also clear misconceptions.
Keval shared that many amateur and unqualified social media handles post about investing in sectoral funds based on their recent performance. This entices investors. Keval said, “Such posts indirectly advocate recency bias. When any of my clients appears to be falling prey to such information, I share long term returns data and sectorial insights. Additionally, to tackle such misleading information, I also make explanatory videos on my social media handles to reach out to a larger audience. “
Cafemutual congratulates every participating MFD for putting up a strong fight against misleading information. We truly acknowledge every initiative taken to protect clients from such information.
Both winners and participating MFDs will receive e-certificates shortly.
