A thought crossed my mind today. How do we buy financial products? Say you have Rs 50,000/- and want to park that money, where would you put it in and why?
I think most of us never bother to first think about basic things like goal based investing and asset allocation before deciding on which product we need.
A blotched understanding of how much returns the product will generate is certainly a big input in the overall scheme of things.
Most of the uninformed investors pick a financial product based on an assumed rate of return which often turns out to be incorrect.
Should not one understand about how the product functions and how it will behave in different economic conditions?
While there are many parameters for selecting a product, how many of us think about the transparency of the product ? With so many financial products in the market, which one do you think is the most transparent ?
Take the below poll to let us know and please use the comments section to justify why.