Enquiry about financial advisors available in different banks & usefulness
Jump to Page:
< Previous [ 1 ] [ 2 ] [ 3 ] [ 4 ] Next >
Location: God's own country
Posted on: 31-05-06 13:10:48
Quote:
Originally posted by reachash
don't compare returns of Private Aggresive sector funds with balanced growth funds offered by any major bank....stop misleading the general public....
What is your point? Are you trying to say that the Big 5 Banks are the only ones in which your money will be safe? Can you give us an example of private funds which did well in the past and is bankrupt now?
Are private funds investing in some metal on the moon so as to get higher returns and which comes with a higher risk. I belive that they invest based on prudent decisions just as the big 5 banks. the big 5 Banks invest with a lot of restrictions and want to save their skin, if they ever lose. There are some people who buy funds from the Big 5 for a variety of reasons. Seniors often fall for the funds floated by banks based on their % of returns thinking that bank floated funds are the best funds in Canada. i donot think that the prudent investor will fall under that catogory. (please note my disclaimer below)
If the poster would like to invest with a bank let him do it. If he wants to invest through a private fund , let him also do it. I did not tell him where to invest but only that private funds offer a better rate of returns than the Big 5 funds. The poster has to compare the charges involved / Risk involved , the current and future economic factors of Canada/ world and the past performance of any fund.
TK
Sidenote : Quotes from the link -> page 10 (please note : I am not recommending anything. This is just information. I may be wrong or right. I am not taking any responsibility for any profit/ loss/ legal action etc...
Quote:
Apla MF investments
1.Dynamic Power growth- manager apla Rohit Sehgal
2. Acuity all cap 30
3. Excel India Funds
4. AGF Dividend Income (formerly belonging to ING)
5. ROI
All solid aggressive except ROI.
More than 90% thru leveraged loans to fast track apla mortgage payments.
Last of the year all funds excepting the ROI giving 20% plus returns even the 30%.
In US having other the funds incl TML flagship growth fund.
India having the Birla Advantage but most other in the stocks.
*************************
FROM PAGE 3
Arey BSE dekhela hai kya aaj? 9,980 pe closing. Aur intra day mein 10,000 ko grazing!
Kya solid!
For info, apun having moolah in one mutual fund here in Canada calling Excel India funds. In gaya 3 years giving solid returns of 40% per year! Actually apla financial advisor tolding very good and he arranging loan for me 2 years ago, 100% no margin, interest only, matlab no collateral needing except for underlying funds and no margin call and paying only interest on loan, no principal payment . So 2 years ago he arranging $50,000 and last year cos ekdum mast return getting, I am tolding him to bump up to $100,000. He very reluctant and told me to sign paper that against his wishes I am asking for increase. Now that $100,000 upto $135,000 plus I had increase from $50,000 of before. Arey solid money! Aur kharcha prime plus 1.75% interest payment only. Matlab about $6,000 last year.
And also because financial advisor reluctant for increase and make me sign paper, I am tolding him to put in front end, so $50,000 I can pull out with no charges. Only first $50,000 he put me in back end so if I take out now I have to pay 5%- 6%(?) penalty. But yaar, it is still good.
Apla original paisa of $10,000 invested 3 years ago in Excel india is now over $20,000. Aple liye 100% in 3 years is mast!
Going to India stocks, apun invested in Bharti Televentures 3 years ago. Aur bolne ka zaroorat hai? Actually in last 3 years jahan bhi invest kiyela hai, bus khali paisa hi paisa nazar arela!
Apun only talking India lakin apun having other loan investing in Canada mutual funds. Also making good money about 30% +last year.
Also if you have to been investing in Hong Kong also the mast money.
US dud hai, baap. Aple paise US mein making money now in USD lakin if considering from time apun invested in 1999, ataa-sataa- matlab breaking even.
-----------------------------------------------------------------
I am a Gents and not a Ladies.
Quote:
Originally posted by tamilkuravan
Quote:
Originally posted by reachash
I don't know where did you get this analysis from. According to morning star.....a leading M Fund rating co........RBC Asset Mgt is the second best M Fund co in Canada with most of the funds rated very well
OK. Then what is the First Best M Fund company? Why not let the poster know this and possibly he may invest in it.
TK A
I have already posted what I had to...I am not here to give any suggestion or advise.....if anybody is intersted in investing....as I indicated earlier....you are better off with your banker or FA....choice is yours
-----------------------------------------------------------------
Let's help each other to grow & prosper in Canada
If the original poster is looking for a push - i would advise an FA/Personal banker with a major bank for the following reasons:
1) I have financial experience and knowledge of securities. No matter what advice I give to my clients, i will get my bi-weekly pay. That said, I do what is in the best interest of a client, because i want to build a long term relation and sell a mortgage/loan (remember banks are in the business of lending) to get my year end bonus. Sometimes a banker like me will tell the client not to invest with the bank and look at outside options.
2) Another reason is that the brokerage units of all major banks have a selection of 2000+ funds as well as other options like PPS notes. Bankers get year round training on financial products and what type of product to offer in which situation. It is not always x>y so i will select x.
I will give you an example to make this simple:
Mr.Patil has a healthy portfolio. His RRSP limit is maxed out. He has some GIC's in his kids name which are long term (5 years). He has a Mortgage with 70% equity. He is also planning to visit india next year. Now he came to his FA with $20,000 that is in his savings account.
An FA would assess the following before giving any advice: 1)Why is he investing - and not paying off his mortgage, 2)Would he bank on these extra funds when he visits India, 3)Now that his mortgage is almost paid off, does he want to buy an second investment property.
Lets say Mr. Patel says hes not paying off the mortgage because he may need funds in the near future, he is also looking at downpayment on a second house. The FA would look an investment that is flexible, and which has no restriction on being used as collateral.
Again, FA's are trained to look at the big picture as compared to risk/return of funds. I believe that if anyone is not satisfied with their Bank, they are too rich to be posting here
well said Toronto_Puttar
-----------------------------------------------------------------
Let's help each other to grow & prosper in Canada
Location: God's own country
Posted on: 01-06-06 10:35:43
Quote:
Originally posted by Toronto_Puttar
1) I have financial experience and knowledge of securities. No matter what advice I give to my clients, i will get my bi-weekly pay. That said, I do what is in the best interest of a client, because i want to build a long term relation and sell a mortgage/loan (remember banks are in the business of lending) to get my year end bonus. Sometimes a banker like me will tell the client not to invest with the bank and look at outside options.
Hi!
While i agree in principle to your other points, i canot agree to the above quote.
FA's in banks are also on pressure to sell their products (just as a private fund representative). Both could lose their jobs if they do not meet targets. Having said this, i also say that a FA in a bank or a FA in a private fund have the same education and both offer the same kind of advise. A FA in a bank is not the one who decides in what way the fund is to be invested in getting max. returns. HE is interested in only selling the product. In the same way, the FA of a private fund also sells a product.
FA's in banks have limited choice and try to be very conservative in their investments, while FA's in private funds are otherwise.
I agree that with a small amount to be invested you are better off through a bank and with a large amount you are better off in a private fund.
See the past performance of any fund before investing.
Also a FA of a private fund may recoemmend RBC mutual if your outlook is conservative.
To conclude, a Bank's FA has a narrow perspective and limited products. A FA of a prvate fund has a broad outlook and broader options.
Note : Just my views and for your information only. Use your discretion and choose your own FA before you do anything with your hard earned money.
TK A
-----------------------------------------------------------------
I am a Gents and not a Ladies.
An investment example
The point of this note. Everyone is willing to bet on short-term, past performance. This is very similar to the comparison of funds "A" and "B" below. These two funds had very different return numbers few years back. Which fund do you think you would have been jumping into in May 2000?
Returns at April 30, 2000
Fund A, 1 year return -3.0% & 2 year return -2.1%
Fund B, 1 year return 95% & 2 year return 46.8%
Especially for investors who chase returns based on past performance, there is no doubt where a lot of money went - the big stack, or fund "B". Is it the right decision over the longer term? Five years later, things weren't looking as hot.
Returns at April 30, 2005
Fund A, Annualized 5 year return 12.2%
Fund B, Annualized 5 year return -21.6%
(The source of this article is from a leading bank and for compliance reasons the names of the funds are not disclosed)
Moral of the story....please don't take your decision on past performance of a fund.....keep in mind your investment objective, time horizon, your own knowledge and involvement in the mkt, amt of investible funds and most of all how much risk tolerant are you. Majority of us make four common mistakes in investment decisions...
1. Buy high, sell low
2. Concentrating too much on past performance
3. Avoid the importance of foreign currencies on fund returns
4. Not rebalancing or reviewing your portfolio on a regular basis
I support views expressed by Toronto_Puttar.....your banker has a lot at stake while recommending you any invst....he/she is concerened not only about your M Fund invst but also a lot of other personal banking needs.....if the suggestions given by him/her are not as per your expectations or are not at par with other available funds in the mkt....guess what....you will take away not just the investment biz but a lot of other more profitable biz from that bank.....on the other hand a private FA doesn't have to worry abt those matters...
I am not writing this post to have an edge over TK....as it hardly matters to me what he says or thinks.....but what matters to me the most is that a lot of fellow members on this site from our country....working hard to not only meet both ends but even saving their hard earned money....should not LISTEN to some misleading views and loose their savings....
-----------------------------------------------------------------
Let's help each other to grow & prosper in Canada
Thanks to everyone for posting comments.
To summarize, does it mean the following:
1] If less than 100K , then go with top 5 banks , possibly split between various banks?
If u go with splitting, any particular bank in the top5 better than the other.
e.g RBC versus Scotia or TD?
2] If more than 100K, then go with independent advisors outside of top5 to go for more riskier investments.
3] One should be able to invest in moderate risk investments going through independent FA's as well?
4] If one goes with the top 5 banks, would they recommend other funds or only their funds in a portfolio?
Currently, looking at performance, most of the funds belonging to top banks do not seem to be doing well. What do we get out of that?
Would appreciate some responses or advise.
