I met few friend investors yesterday. There are not my investors, but banks. Their questions? They do not know how's their fund, being sold, perform; or they do not know are their investment making or losing money. And they seems like do not want to check out from the bank. Why? I guess the reason they invest revealed as much. "Aiyaa! I do not want to buy one. I want to put in FD. But the bank officer keep saying this fund better than FD. So, I buy some lor."
In fact, my mother-in-law was sold the same thing in the same way. She went to the bank to renew her FD. The bank officer simply suggest a product (without revealing it is an unit trust fund) that claimed to be better than the normal FD. So, she bought it. After a while, she wondered why the statement doesn't come in the time frame promised. She went to the bank to check out. Bank told her statement had been sent out. Apparently, all her unit trust statement will be sent to her daughter's address. She called us whether we had received it. Aha, it is with us. Then only we all realized she had been sold a unit trust fund. Luckily it was a low risk bond fund.
I guess they are many more people who face similar problem - being pushed / pressured by bank to invest in unit trust fund without really knowing the product features. I pity them. They went to deposit FD but was sold something else.
Being their friend, I have to prepare some fact sheet or report to show to them the fund's performance and to give some advice whether they want to keep the fund. Normally, if they are satisfied with the returns, then I will let them to keep the fund. If they insist to redeem, I will help them as well. In either case, it doesn't matter they re-invest the money with me or not. I remind myself that I should propose at the best interest of client. Silly?
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