A typical year-end pitch from a bank relationship manager asks customers to put money in tax-free schemes offering good, often double-digit, returns. A customer who understands financial products will immediately realise there is no mutual fund product that can offer an assured return as well as a tax benefit. Only when questioned more aggressively will the relationship manager or seller admit it is an insurance product and, most likely, a traditional one. The regulatory arbitrage between MFs and insurance products has existed for a long time.
Is your money management strategy actually working? Key signs you might be off track
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