Ad Here  
July
August
September
October
November
December
 
 
Are you being conned? Getting insured Companies should “opt” to manage foreign exchange risk Fill it, Shut it, Forget it Why it pays to be sector specific Sri Ciy - A ‘SMART’ CITY Looking for the next Unicorn It’s raining investments… Irrationally yours
 
Are you being conned?
First things first; and it’s a full disclosure. I’m an investment advisor myself and hence in the same profession. All that has been written below applies to me as well. However, I encourage my clients from the outset to follow these.
A PLAYBACK SINGER recently filed a case against a blue blooded bank in Mumbai that she handed
over her money for them to manage only to see it dwindle due to mismanagement. It is one thing if the bank had lost money due to market crash or wrong choice of investments but it seems that they used empty signed papers from her to move from one investment to another with the idea of enriching themselves from the commissions and not bothering whether the investments actually made a profit or loss. The matter at present is sub-judice.  Guess the bank and win a prize!

After this high profile case came to light, another startling news emerged. The same bank has been
asked by its London HQ to stop selling / managing investments as a ‘cultural’ audit found that the
selling practices were not upto the standard. But the bank subsequently said it is implementing some
new practices.   Another large bank went to the police against its own manager who has promised his clients about some special product that gives guaranteed high returns but has eventually siphoned off the money to his personal account. The scam came to light when a customer had called to enquire about this special product. A major auto company’s management was taken in by this and lost quite a nice packet.  

Some ‘new’ practices...

Similarly, a broking company belonging to a large corporate group known for its trustworthiness’
had to fire its managing director and close down its portfolio management services after it came to
light that the investors were made to invest in a risky derivative based investment strategy where
most lost their entire investment.  

They believed in magical high returns

The sad thing in all of these instances is that the end victims were quite successful individuals in their
own domains like corporate finance heads, head of private equity firms, etc. These are not by any
stretch gullible investors. They failed to check what was happening and believed in magical high
returns.Here is a basic checklist that you must put to use. 

1 2
Author :
Reported On :
Sector :
RELATED NEWS
ABOUT IE
IE, the business magazine from south was launched in 1968 and pioneered business journalism in south. Through the 45 years IE has been focusing on well-presented and well-researched articles. When giants in the industry stumbled to keep pace with the digital revolution, IE stayed affixed embracing technology.
Read more
 
PRIVACY POLICY
Economist Communications Ltd is committed to ensuring that your privacy is protected.
Read more
TERMS AND CONDITIONS
You agree that your use of this Website and the purchase of the magazine will be governed by these terms and conditions.
Read more
 
CONTACT US
S-15, Industrial Estate,
Guindy,
Chennai - 600 032.
PHONE: +91 44 22501236
EMAIL: indecom1968@gmail.com