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Ten Hidden Rules Of Investment And Financing Industry

2010/5/18 11:47:00 18

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Hidden rules: free recommendation stocks trap

[latent rules]

Ms. Zhao of the public reflected that she saw a hotline on the TV which recommended the stock free of charge, so she fought in the past. The operator recommended several stocks for her enthusiastically. She also suggested that she pay the membership service charge and enjoy a more comprehensive financial service. After remitting 3680 yuan, she got a stock that was said to be "guaranteed to make money". She bought 5000 shares, but unexpectedly lost 10 thousand yuan a week.

[experts remind]

At present, many websites and televisions have similar referrals hotlines. Behind them are financial consulting companies operating, hiring a group of securities analysts, nominally free recommendation of stocks, in fact, deceiving shareholders into membership, becoming members and paying service fees on time.

Ordinary consumers should not trust the experts, do not superstitious stock trading, do not easily disclose to strangers their phone numbers, identity numbers, bank accounts, securities passwords and other information, do not trust all kinds of information on the website, believe that oneself is the most important.

Hidden rule two: don't trust the expected revenue.

[latent rules]

Mr. Zhang, a member of the public, reflected that he bought a fund management product invested in the stock market at the end of 2007, which cost 100 thousand yuan.

I didn't expect it to be more than 60 thousand yuan now.

At that time, the bank salesmen said yes, the fund's historical performance was in the top and its annual revenue has more than doubled. The expected revenue in the future will be 30%, which is much stronger than that of bank deposits.

As a result, nearly half of them were lost after buying one year.

What is most indignant is that after selling the financial products, the banks no longer contact him, even with ordinary letters and telephone calls, and the fund company also receives management fees every year.

[experts remind]

When banks sell financial products, they choose historical performance as a bright spot to advertise, but historical performance does not represent the present and future. The expected rate of return is only a figure used for publicity, and it is not equal to the actual yield.

Investors must have a correct judgement when buying financial products. Before investing, they must know the investment target thoroughly, and read the product instructions carefully.

Potential rule three: a customer must open a card when he has to go to the bank to open his passbook.

[latent rules]

Mr. Chen, a complainant: when I was in school in Changchun, I ran a bank card, and now I want to close the account.

In addition, the bank now requires "one card ninety percent off", and it is necessary to open a bankbook to open a bank card. Is that reasonable?

[experts remind]

In order to protect their own interests, banks may set up industry hidden rules, but these rules must comply with the regulations of the people's Bank of China and the Banking Regulatory Commission, and should inform public in advance.

In the face of unfair treatment, consumers can also complain to the CBRC, or even sue to the court to request that such practices or provisions of the bank be invalid.

Unspoken rule four: advance loan repayment needs appointment scheduling

[latent rules]

Ms. Tang: at the beginning of February this year, I intend to repay part of the loan in advance, but I was told to make an appointment one month in advance.

"An appointment can be understood. Why is the schedule so long?"

Ms. Feng believes that this is a way for banks to procrastinate in order to harvest interest on mortgage loans.

[experts remind]

This year, the central bank made steady and steady recovery of personal loan proposals, and the specific rules for banks to make advance loans were different.

Some banks restrict the amount of loan repayment in advance, others need a longer appointment and some are relatively flexible.

The legal profession said that as the regulatory authorities did not make clear provisions for the delay in the examination and approval, the banks made no obvious mistakes in making rules according to the actual situation, and the borrowers were unable to claim compensation from the banks.

Potential rule five: selling products for sale, ignoring the rationality of financial planning proportions

[latent rules]

It is a natural procedure to see a doctor and seek medical advice.

But nowadays, the financial planner who plays the role of "family finance doctor" only sells "medicine" instead of "Fang", with only one purpose: selling products.

The pressure of performance, the temptation to get a return on commission, let some financiers sell their products, not only sell their financial products, but also the products of other banks and funds and trust companies; the higher they give, the higher their enthusiasm for selling them.

This directly leads to some financial products sales staff to realize the sale, not really understand the actual needs of the customers, the risk test flow in the form, even cut the performance, make every effort to make the customers who can not reach the risk level "meet" the evaluation goal.

[expert reminded]

Financial planners should take the interests of customers as the first priority, but in reality, the owners of financial planners are often not customers, but big financial institutions. This means that when financial advice involves asset allocation and product selection, there may be "orientation", which is directed or profitable, or indicators.

For example, the banking commission can generally earn about 3% Commission, while the affiliate fund is only 1.5% or even 0.6%.

Under such a premise, if a financial planner sells the bancassurance products vigorously, there is nothing strange about it.

Independent third party financial planners may also be guided by commission rather than customer interests.

It is also a sales fund, and it may be different from each other. Those funds with high rebate commission or better fund companies will often be recommended by financial managers.

No one has done any business, which undoubtedly strengthens the mess of putting the cart before the horse in the money market.

Because of this, the financial planners in the market are, to a large extent, known as "salesmen of financial products".

Potential rule six: say more to yourself, say less or not.

[latent rules]

In July 18, 2008, Mr. Zhang, a bank's customer director, recommended a "double interest deposit" product to Mr. Fang according to his investment intentions.

A single word means deposits, and it is estimated that there is no risk.

In the absence of scrutiny of documents, Fang invested $more than 170 thousand and $more than 110 thousand in the purchase of this product.

Unexpectedly, 1 months later, he lost about 300000 yuan because of the change of exchange rate.

Until then, Fang knew that the "double interest deposit" was different from the ordinary deposit, but it was a risk investment.

The argument between the two sides is whether they were misled by the bank and did not inform them of the risk when they purchased the product.

The bank believes that Zhang has clearly informed the agreement when he signed the agreement, and gave Mr. Fang risk tolerance test and investment adequacy check. Mr. Fang also read and signed a double interest deposit confirmation letter and other documents, and the entire sales process was carried out in accordance with relevant regulations.

Mr. Fang's agent said that Mr. Fang was a trading document signed under full trust of his client director Zhang, but Zhang did not show each page material to Mr. Fang. Mr. Fang only read the pages he signed.

[experts remind]

Speaking three points, to a certain extent, represents a rigorous, prudent and humble attitude: not to speak full of words, big talk is the responsibility of financial planners.

But from a different angle, it is a common trick for some financial planners to sell products when they say "no" or "no" to themselves.

For example, exaggerating product gains unilaterally and avoiding possible risks often become the main culprit of investors' investment failure.

Summing up a series of cases of zero yield or negative income generated by financial products in recent years, it is easy to find that the focus of the dispute often comes down to one point: when salesmen sell such products, do they only emphasize earnings, and mention or not mention risks?

The contents of some financial products are complicated. Most customers can not fully understand the elements of the product. Marketers usually send a bunch of information, but they do not explain them one by one according to the material.

In order to sell financial products as soon as possible, some bank financial managers are more willing to speak with their tongue and avoid paying more attention to their customers.

Under the effect of money making, the quick and quick gains and gains of buyers and sellers chime together, but foreshadow the subsequent disputes.

Hidden rules seven: product design dazzled, do not understand and give people.

[latent rules]

Cumulative option products are "notorious" this year.

More than just the rich in the mainland, many Hongkong dignitaries have been planted in this "financial drug". Tens of millions of people have lost their debts.

With the expiration of products, losses are frequently surfacing.

Mainland investors' perception of this product can be roughly divided into two categories: completely unclear risks and clear risks, but willing to fight.

The latter was more "encouraged" by the bull market in 2007.

What is more serious is that the international media has disclosed that many organizations that manufacture and sell financial derivatives themselves can not tell the risks of such products. At the same time, in order to get sales bonuses, salesmen tend to describe profits and ignore risks. With the iconic status of investors in international well-known institutions, many rich people really fall into traps without knowing much, and their wealth is quickly ransacked.

[experts remind]

Today's innovative financial derivative products are designed to be dazzled. Non ordinary investors can fully understand that even a financial planner who sells the product knows little about it.

Since earnings must be accompanied by risks, it is equally important for investors, or issuers of products, to fully understand the benefits and risks that financial derivatives may bring.

From the perspective of risk disclosure, financial products in the domestic market are mostly products sold by commercial banks and investment banks.

Investment banks master detailed internal information such as trading systems, counterparties, trading funds and trading platforms, which are not available to commercial banks. Obviously, it is also beyond doubt that financial advisers who sell these products will better understand and recognize such products.

Nowadays, intermediate business income has become an important item of bank income. Many financial planners do not know enough about all kinds of financial products and have no overall idea of financial management.

Hidden rules eight: financial superstition "big but not fail" and "big but undefeated" myth.

[latent rules]

Superstition is a crisis of faith.

All along, there has been such a rule in the financial field: we believe in the myth of foreign investment institutions, big companies and superstitious "too big to fail".

Extending to the field of financial management, it tends to form a solid thinking: buying products from large financial institutions and buying top ranked products.

Before the outbreak of the financial crisis, the pursuit of foreign institutions, especially internationally known large foreign banks, reached an unprecedented height.

The high net worth crowd is more prominent, they favor the foreign bank's international vision, the international brand, the high-end personal service system, and the rich product system all over the world.

Under this trend of thought, financial decisions simply start from their own interests or exaggerate the "Moon" and make judgments.

In addition to the pursuit of foreign institutions and big banks, there has been a "ranking dependence" in the field of finance. The fund does not choose products according to their actual conditions, but rather the number of "stars", or the first choice of products in a certain period of time.

Bank financial products also have a similar situation.

[experts remind]

Quite a lot of financial planners make financial planning easier for their clients. They are more likely not to take account of their own needs, not to combine risks, profitability, and mobility comprehensively. Instead, they are based on the psychology of conformity, based on solidified thinking, and based on the "big but not inverted" and "big but undefeated" spirit, the choice of financial products is made.

In 2008, the financial crisis made the group pay a heavy price. At the same time, the superstition of various financial models and innovation theories and superstitions of financial tycoons went down the altar.

Hidden rules nine: in a highly homogenized market, financial products are all damaged.

[latent rules]

With the emphasis on "seeing much" or pursuing hot spots in the market, the similarity of domestic financial products is quite tacit.

Of course, this is closely related to the lack of rationality of many investors.

Many investors are keen on "star fund" or "star fund idea".

This trend leads to different funds with different product characteristics, which share the same investment portfolios. The same fund company owns several partial equity funds, and even the same fund manager manages many funds.

The mentality of "wolves tactics" and "homogenization" investment is quite obvious.

Incomplete statistics show that in 2007~2009, there were 49 fund managers who participated in the management of two or more funds.

[experts remind]

Because of the limited energy of fund managers, it is unavoidable to invest in their funds. On the other hand, under the pressure of ranking, they tend to get the average earnings for "avoiding mistakes", which leads them to follow the trend and catch up with the hot spots.

Some funds tend to be identical in the industry and heavily loaded positions, and are different from their names or even fund contracts.

This has nothing to do with the market's pursuit of short-term effects and neglect of long-term returns.

Of course, "homogenization" should also be treated differently.

The positive significance is that, for example, joint investment in stocks of a certain field or some high-quality companies reflects the overall and consistent improvement of domestic institutional investors in the company's research and selection ability.

However, it is undeniable that the level of innovation of domestic financial products is relatively low, and the product innovation is mainly manifested in the extension rather than the connotative type, and the phenomenon of product homogenization is more prominent.

Under the changing market situation, it is not surprising that wealth management products are showing signs of deterioration.

Hidden rules ten: emphasize the "buyer's conceit" and ignore the "seller's responsibility" as a marketing umbrella.

[latent rules]

Compared with other rules, this is a written "hidden rule".

In September 2007, Liu Hua, a sixty year old man living in Wuxi, Jiangsu (a pseudonym) invested in financial products. In September 2008, the product lost 20 thousand yuan due to its expiry date, and then brought a bank to court.

Liu Hua alleged that the agreement was signed because of the trust in the bank and the connotations of the agreement.

Liu Hua was defeated by the court of first instance.

The court held that, in the agreement signed between Liu Hua and the bank, the investment product risk was prompted in writing. Liu Hua could not prove that the bank had not made any risk warning obligation to the customer. As a natural person with complete civil capacity, he should have a clear understanding of the risks of the products he invested in when he bought the financial products, and did not read the agreement carefully. He should be regarded as giving up his right to know and responsibility for himself.

There is a lawyer, frankly speaking, in individual investors and financial institutions for financial losses in court cases, individual investors win the probability is very small.

Even if investors carry out curve compensation, there will always be a suspicion that people will have a close relationship with people.

"Seller's responsibility" has become a perfunctory way.

[experts remind]

The supervision intention of "seller's responsibility and buyer's conceit" is obvious, on the one hand, it should prevent investors from moral hazard; on the other hand, it is necessary to strengthen the responsibility of financial institutions.

The two must emphasize at the same time that we should not neglect any side, or even emphasize the "buyer's conceit" under the premise of "seller's responsibility".

But the reality is that, compared to the "seller's responsibility", "buyer's conceit" has the upper hand.

Obviously, in the above example, Liu Hua old man has to buy his own behavior for his behavior, but it seems hard to see the shadow of "seller's responsibility" as an institution.

We found that in the sales process of financial products, most financial masters only tell customers to buy, but do not prompt when to sell to ensure profits.

The reason is that the performance mode is mostly based on the amount of pactions, that is, when buying.

For example, most of the financial products are designed for front-end charges, and there are less time to sell fees.

In addition, the instructions for financial products are mostly vague, professional terms appear frequently, and even the publicity materials of financial products must read small words.

For example, some promotional materials are printed with the word "profit 18%" and printed with "3 years" in small letters.

Similarly, bank exemptions are often printed on promotional materials with small words.

This exemption statement is usually "this promotional material does not constitute a contract".

It means that even if the actual operation of bank products is not consistent with the promotional materials, investors can not tell the banks by propaganda materials, and these promotional materials are often written with great charm and temptations.

In fact, this is a kind of deception, it is better to cover up.