Hi everyone.I write this review to warn everybody about my experience with this company. I opted for an SIP starting June 2008 @ 1500/- per month. The sales guy said that my money will triple in five years. Without asking any further questions, not reviewing anything about the company and trusting the sales guy, i blidfoldedly signed up for an SIP(lucky not to have opted for more investment).
As of now, my total investment is Rs.45, 000/-(for the past 30 months), but, the net amount due to me is only Rs.34, 000/-.
Further, I cannot take back my money till june next year(the 3 year lock-in period was conveyed by the sales agent). Even after the third year, if I were to withdraw my money in say july, the first year subscription amount(12months x Rs.1500/-= Rs.18, 000/-) will be entitled for a deduction of 24%(Please read the offer document carefully). It will get reduced 1% a month, which means after 2 years(24 months) I will get MY MONEY without any deductions.
Further, you lose a substantial percentage during the first year due to administration charges, etc, etc(plus taxes, surcharge, etc). It reduces during the second and the third year though. You will be surpised that these so called charges actually eat up a chunk of the invested money.
You are lucky if the allotted scrip value increases. It will increase or drop according to the stock market. Which is why, it is very cleverly said:’Please read the offer document CAREFULLY’, which means the company is not responsible for the downfall. In other words, if the stock market loses drastchandru021y, so will your net investment.
There is absolutely no guarantee of return of your own money in full. In abstract, you put your HARD EARNED MONEY in mutual funds to(a) pay for their administrative expenses(b) pay taxes to the government during allotment of share units every month(c) pay for three years and wait for an additional 2 years to get you full money, thereby helping the company make additional revenue for themselves through interest earning with your capital.
If you register andlogin to the HDFC Life Insurance website, the policy abstract will be in greek and latin. A normal person will find it very difficult to decode it. It only gives you a glimpse of all the units allocated and the deductions made(in a most complicated manner). Further, you will also find it loaded with irrelevant information like my consultant details(that guy has changed his job and his mobile not reachable, so whats the use?). You will also get info abt the payments made, e-transfer of funds, etc which will be very easy to navigate and make use of, since they only target your money. Overall, in the website you will not get relevant details about your fund details and the investments made(all you get is a complicated statement of deductions and investment in units).
On the first year I got a consolidated statement. Dont know why it stopped. Now I only get payment reminders.
Guys, to the best of my knowledge all mutual funds are like that only. Am sure you will NOT READ THE OFFER DOCUMENT before signing up, cos the offer document is nothing but a piece of complicated legal terms that is most boring and difficult to comprehend. Atleast be aware of where you are dumping your money.
For First timers, if the sales guy lures you into high return of investment, listen to him or her carefully and ask these questions:(a) Ask him if he can give in writing, in the company letter head that your investment of Rs.XXX will give an assured Rs.XXXX, signed by atleast the branch head. Trust me, nobody will dare give you in writing of all the false promises made.(b) Ask him, if you invest, say Rs.10, 000/- a year, what will be the net amount balance that you will have in your account at the end of the year(c) Ask for a reference of his existing / past client. Ask him to make a call immediately, so that you can see his face go blank. If he his smart and still makes a call to some odd client who is happy(or) his friend acting like a client, just ask his policy details, investments made, etc - baschandru021y try to gather as much info as possible, so that during the conversation you can make out if he is telling you the truth.
If you have read this review, am sure you would have had glimpse of what this horrid mutual fund industry is all about. All am saying is, please evaluate your net woth carefully and(a) if you are a high risk taker and have lot of money to spend, then park some money in these so called mutual-funds and hope for a better return(b) if you have earned money the hard way and if you dont want to gamble with it, please put them in post office, banks, etc., wherein atleast your principle amount is safe and you can withdraw it any time.
Am not writing this review to confuse anyone, nor do I have any grudge against this company or any other company. I am an affected party. Thought I will share my experience, so that atleast some one will take me seriously and dont commit the mistake I did.