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Caveat Emptor – Let the buyer beware….!

Two days back ,I got a call from my old friend saying her colleague is persuading her to buy a product siting all its advantages for her and likely returns that she will get. Confused with what decision to take and tempted with the returns her colleague was getting she was asking my opinion. When read about the product details that she shared with me, it was evident that the product was not suitable for her and she changed her mind after understanding all the reasons behind it.

This happens will almost all of us when it comes to investing!

We are born buyers! Till the time we start handling money transactions, our parents buy us books, gifts,clothes, etc and when our pocket money days start, we shop for ourselves!

When you buy clothes, books or anything which you need/want of your choice, you know why you are buying it, how much will it cost,how it is beneficial for you to own that, how much happiness will it bring to you.

When buying such things you think and consider so many factors; THINK ALIKE FOR YOUR FINANCES TOO!

Many a times it happens that, you buy a financial product/invest in a financial product just because your friend /colleague has got it, or your relationship manager is asking you to buy, or you have simply heard about it!

Such investments may not necessarily prove lucrative for you and your hard earned money! Please understand, YOU are different from others in terms of your income, expenses, responsibilities, dreams,liabilities,tax implications, risk appetite,age,etc. So, consider these differences and try to choose investments which is suitable for you!

For that please understand your risk appetite,write down your goals and set the timeline for them to achieve, calculate your liabilities, future responsibilities that you may need to shoulder and then read and understand available investment products and opportunities. Understand their functionality, tax implications, risk levels, ease of transactions, etc. When you give due time to read and understand, choosing a right investment and investing in it is a click away!

But when you fail to do that, the loss that you may suffer due to unsuitable choices of investment, is totally yours!

Let the buyer beware!!

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