Financial products to avoid

We frequently come across relation managers from banks calling us and telling us about too good to be true products which will take of our retirement, investment needs, health costs, child's education, child's marriage etc etc. If it is too good to be true then it may not be true and yes there is a way to identify too good to be true financial products.


Financial products which are sold mis-sold to to us by commission seeking intermediaries in the financial system can be easily be identified and hence avoided. The trick is not fall for the amazing stories they tell us about the gains to be made from buying the product. The trick is also not to fall when they make us fearful by telling us that how we are exposing our family by not buying their product.


The key is to remain objective and look for some characteristics common in all available financial products.

Characteristics of avoidable financial products

We can all relate to the ULIP's which were sold rampantly. How can we forget investments sold in the gusie of insurance and vice versa. Fixed returns guaranteed, and highest NAV guaranteed are some examples of financial products which need to be avoided unless they are really suitable for your financial situation.