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Is your wealth manager trustworthy?
Wed, 2 May Pre-Open

When it comes to managing money amateurs generally prefer hiring experts for their valued investment advice. But before you sign up with any wealth manager you should be aware about the potential conflict of interest which can result in mis-selling. For instance, the wealth manager may sell you a product which earns him a higher commission but is completely irrelevant to meet your portfolio objectives.

Thus, while hiring professionals to manage money, one has to be reasonably confident that the advice that comes in is unbiased. The first job of the wealth manager is to understand the risk profile and return expectations of the clients before he begins the financial planning exercise. Only after that the asset allocation must take place to meet the portfolio goals. Risk profiling is important because financial advice needs to be customized for every client. However, that rarely happens in the Indian context. A septuagenarian can be mis-sold an equity product if that garners a higher commission to the distributor. Further, bundled insurance products are also sold to the clients when in fact they do not require insurance cover at all. It is unbelievable that sometimes equity products are sold as guaranteed return devices! Thus, rampant mis-selling persists in Indian markets.

However, sometimes it might be argued that the wealth manager's job is to provide the financial advice. And it is up-to the customer to accept the same. However, the rule of Caveat Emptor (Buyer Beware) does not apply here. Wealth management includes a comprehensive solution to all financial needs. And it is the fiduciary responsibility of the manager to educate the clients about potential pitfalls of investing into asset classes that violate their risk/return objectives. However, ethics are aloof to the financial industry in general.

So, how does a lay investor figure out the perfect wealth manager for him?

Well, the first thing the investor needs to do is to check the historical track record. Past claims should have valid proof. Also, never simply go by the adviser's mouth. Consult a few experts and compare their advices to get a judgment of what they are trying to sell and what you need. Conducting own research on raw basis is also helpful. It is also necessary to ask about the experience and qualifications of the wealth manager. After all it is your hard earned money. These steps can prove to be a good cross-check in selecting the right wealth manager.

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Stock Market Updates

Bloodbath on Dalal Street: 6 Reasons Why Sensex Nosedived 1,939 Points Today (Today's Market)

Feb 26, 2021 Closing

Indian share markets end deep in the red with the Sensex down by 1,939 points and the Nifty ending down by 568 points.

ONGC Share Price Down by 7%; BSE OIL & GAS Index Down 4.0% (Today's Market)

Feb 26, 2021 03:34 PM

ONGC share price is trading down by 7% and its current market price is Rs 118. The BSE OIL & GAS is down by 4.0%. The top gainers in the BSE OIL & GAS Index is CASTROL INDIA (up 1.3%). The top losers are ONGC (down 7.1%) and GAIL (down 6.3%).

ULTRATECH CEMENT Share Price Down by 5%; BSE 500 Index Down 3.4% (Today's Market)

Feb 26, 2021 03:30 PM

ULTRATECH CEMENT share price is trading down by 5% and its current market price is Rs 6,487. The BSE 500 is down by 3.4%. The top gainers in the BSE 500 Index are SOUTH IND.BANK (up 10.4%) and JAGRAN PRAKASHAN (up 10.0%). The top losers are ULTRATECH CEMENT (down 5.0%) and BAJAJ FINSERV (down 6.3%).

JAGRAN PRAKASHAN Share Price Up by 10%; BSE 500 Index Down 3.2% (Today's Market)

Feb 26, 2021 03:26 PM

JAGRAN PRAKASHAN share price is trading up by 10% and its current market price is Rs 60. The BSE 500 is down by 3.2%. The top gainers in the BSE 500 Index are JAGRAN PRAKASHAN (up 10.1%) and RCF (up 11.0%). The top losers are MAHINDRA CIE AUTO. and AJANTA PHARMA (down 0.1%).

UPL Share Price Down by 5%; BSE 500 Index Down 3.2% (Today's Market)

Feb 26, 2021 03:26 PM

UPL share price is trading down by 5% and its current market price is Rs 589. The BSE 500 is down by 3.2%. The top gainers in the BSE 500 Index are RCF (up 11.0%) and SOUTH IND.BANK (up 10.4%). The top losers are UPL (down 5.4%) and BAJAJ FINSERV (down 6.2%).

ICICI LOMBARD GENERAL INSURANCE Share Price Down by 5%; BSE 500 Index Down 3.2% (Today's Market)

Feb 26, 2021 03:26 PM

ICICI LOMBARD GENERAL INSURANCE share price is trading down by 5% and its current market price is Rs 1,479. The BSE 500 is down by 3.2%. The top gainers in the BSE 500 Index are RCF (up 11.0%) and SOUTH IND.BANK (up 10.4%). The top losers are ICICI LOMBARD GENERAL INSURANCE (down 5.2%) and BAJAJ FINSERV (down 6.2%).

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