GK
BANKING AWARENESS AND SEBI
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which among the following refers to misselling?
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When mutual funds are sold without telling the likely returns
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When agents invest somebody’s money in mutual funds without their knowledge
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When agents sell the products without telling investors what are the risks involved in investing in mutual funds
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All of the above
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Explanation:
Detailed explanation-1: -What Is Misselling? Misselling is a sales practice in which a product or service is deliberately or recklessly misrepresented or a customer is misled about its suitability for the purpose of making a sale.
Detailed explanation-2: -A major cause of mis-selling is investors’ lack of knowledge of financial goods. Lack of transparency is another cause. If one lacks financial literacy, they can learn how to understand the product or seek the advice of a financial advisor.
There is 1 question to complete.