Investments & Financial Frauds – 10 points you must follow to avoid getting fooled.
We all deal with many relationship mangers and sales executives for our investment needs which are generally based on mutual trust. But how do you know that your Relationship manager is truthful and never misuses your money.
Follow the below 10 points to be on safer side:
1) Always make it a point that your bank account and your investment (trading and Demat account) are not managed by same bank or same relationship manager.
Example: If your bank account is with ICICI, open your investment (trading and Demat account) with kotak Securities. (Just example)
2) Never Sign blank documents, Cheques (cheques should always be crossed) etc even if your relationship manager says he will fill it up on his own. At least glance the document before signing.
3) Always ask for hard copy of the statements. Develop a habit of glancing it.
4) Be very care full if you have to sign Power of Attorney (PoA). PoA is the permission given in advance (in writing) by you to your stock broker to do certain transactions on your behalf. It’s very dangerous if you do not understand it clearly.
5) Regularly check your bank account, investment (trading and Demat account), even if you have not done any transactions.
6) Be practical, greed is the main reason for getting cheated. Never listen to any one who offers to give you more profit or more than reasonable returns on your investments.
7) As you do with the doctors, always go for second opinion about the scheme in which you are investing.
8) Always ask for a photo copy of the applications filled by you. Keep it safe, it really helps.
9) For a change, instead of calling your relationship manager every time, try getting your account details from another person in the bank / broker office.
10) Never share your financial details like Pan Number, login id / password, bank account numbers, trading account numbers to anyone whom you do not know.