This is in regard to many ICICI Fund or Policy and same goes to other Banks.
Investor should understand: Whatever product or investment option launch by Bank is mainly intended to benefit Bank only , rarely customer got benefit if he is very lucky. But, bank executive sell the product by counting bogus benefit for customer. Wake up investor and realize the purpose of your investment before taking any decision.
Ask for written agreement as part of their Terms & Condition document (Not email or verbal statement) from Bank for the following:
1.Minimum return % (like 9% or 11% Annually). They tell verbally but don’t give in writing because even Bank don’t trust their own product but ask Customer to trust. First Bank has trust to include all Return % in their standard Form & Terms and Condition.
2.Bank mentioned all their charges in their Form but don’t mention the Return or earning.
3.Tell bank to deduct all their charges from earning /Return not from Principle value. Customer invest to earn money not to give these charges. If there is no earning then how come Bank take their Fee. They have to perform before demanding any fee. This should be mention clearly in their Form or Terms& condition document.
If these clause not clearly defined then your hard earned not safe. Forget about the earning, your principle value would be –ve after few months or Year. Only you will be loser because Bank keep them safe by deducting their charges upfront.