A financial planner does not sell you a single financial product, but a financially secure lifestyle. In a sense, he buys for you.
Most so called relationship managers / wealth managers / insurance agents / mutual fund distributors are out to sell you their financial products. They will blindly recommend one particular mutual fund (usually a NFO) or a ULIP to all their customers. They follow a ‘one-product-for-all’ strategy. This is not financial planning. It is product selling, irrespective of the client’s needs or requirements. A lot of people fall for this because the person calls from XYZ Bank where you have your account, so one tends to automatically believe them. And you end up buying into the ‘flavor of the month’. Think for yourself before you invest in any product.
As far as investing (in equity in India) is concerned, India is still in its nascent stages. People are still understanding what investing is all about. They tend to buy products ad hoc rather than in a planned manner. But investors are learning and gradually moving to a planned and focused method of investing. As the market matures, so will the investor.
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