Mis-selling and mis-buying: both need to be curbed
Investors need to consider suitability, risk appetite, and objectives when investing in financial products. Professional advice is recommended, and investors should take responsibility for their decisions. Sebi has measures to curb mis-selling, but buyers must be conscious of their choices. Asking the right questions is crucial when seeking financial advice.
The purchase or sale of financial investment products is a delicate affair. It is not merely about preferences as in the case of buying a consumer product like a car or shirt or even getting a haircut, it is about suitability— whether it can meet the requirements and objectives of an investor. If the investment product is not suitable, or if any investing is done without proper understanding, the outcome could be unpleasant. Surprisingly, people spend more time on due diligence where it concerns consumer products but not so when it comes to financial investments.