A lot of dust has been raised about the write-down of additional tier 1 (AT1) perpetual bonds of Yes Bank—about its technicalities, its fairness, et al. The loss is a moment to pause and ponder how financial products are sold and the lack of understanding of associated features and risk factors. Let’s take the term mis-selling as selling a product by highlighting or exaggerating the positive aspects and suppressing the limitations or risk factors and the suitability of the product for the requirements of the customer.
Key to long-term investing: ‘Time in the market’ more important than ‘timing the market’
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