Why We Should Pay Heed To Disclaimers?

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Disclaimers are put forth while a new investment option is kept open for the public in fine print or announced on the different media platforms has a very unusual life span and even before it is attended to by anyone seriously it loses it importance.

The disclaimers come with mutual fund investments and also with insurance in very small fine print which tells about the cases in which the claims shall not be entertained by the insurer.

Why We Should Pay Heed To Disclaimers?

In general, a disclaimer statement with respect to mutual funds says ' Mutual fund investments are subject to market risk, please read all scheme-related documents before investing'. Nonetheless, had the disclaimer been more realistic and may touch your souls directly, like you could lose your money significantly if you do not understand the complete terms of your investment.

Or the same may be more revealing the case as is in general, wherein mutual fund distributors and agents, sell products that prove to be better off for them in terms of high commissions on them. So, certainly you need to give a second thought to the disclaimer and understand the investment instrument to a maximum possible degree, such that it is better off in meeting your financial goal.

And, you just do not ending a huge sum, towards expenses or commissions paid out to the agents, that ultimately reduce your NAV of the fund and hence your returns. So, its utmost important to go through the finer text in disclaimer because it is here where the exact picture is hidden for an investment option.


Story first published: Wednesday, July 19, 2017, 12:31 [IST]
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