Logo


Don't let numbers fool you: Learn ways to evaluate financial instruments

The sales pitch may showcase the best data, but there could be mis-selling involved. Learn the right ways to evaluate financial instruments

Don't let numbers fool you: Learn ways to evaluate financial instruments

In the complex world of finance, numbers can be deceiving. A good salesperson can sell a poor investment product as the best available in the market. He doesn’t even need to tell a lie. Staying within the norms the regulators have prescribed, he can mis-sell a product showing correct figures. After all, 7.5 per cent annualised returns over a decade also mean 100 per cent returns on the principal amount. A 12 per cent loan can turn out to be a 21.2 per cent one if a borrower doesn’t understand the difference between flat rate and reducing balance rate. Investors and ...