The Reasons Of The Failure Of The S I P Plans
Peculiarity is a BOON
as well as a CURSE to the Indian system of work culture and more
often than not it is seen and it is envisaged that a system which meets which
forceful success ends up with all the
kind of doom and failures and the present SYSTEMATIC INVESTMENT PLANS ( S.I.P
) of the various Banks too would end up in the same.
S.I.P infact is a kind of the share that the bank invest
through it’s valued customer and it is somewhere also known as MUTUAL
FUNDS as the Mutual Funds
schemes is spread across the S.I.P plans .S.I.P infact is the share that the
Banks credits that to the customers while it buys it from the share market
after the customer prefers to invest it’s or his money in this schemes.
The Banks- every banks in India from the year 2019 started
this schemes. The personnel’s of the Banks would meet the customer at their
places in their offices while in the duty hours and would appraise and convince
the customers to buy this plans for investment.
In the initial year of implementing this scheme and the
plans, there were many in the Banks, the Banking personnel’s who would spend
their valuable time with the customer explaining them all about the schemes and
would get the valued customer to invest their money in the schemes.
As it happens in India, the first year of every schemes
proves beneficial to the customer and the S.I.P also was not a failure as and
in any sense. The customers who invested their money got their worth.
So much so , to cite as an example, that if a person had invested say about Rs 3.0 Lakhs in the scheme, after a year he received 6.83
Lakhs in returns only if he maintained this money in his account without disturbing it for one full year. The Bank would use the FD of the customer to amalgamate that FD with this and play upon the customer.The initial
success of this prompted the people to close themselves up with the banks
especially the private players, of which the ICICI Bank was the
BEST in terms of the performance and in terms of the returns.
However the second
year saw this scheme failing and the people now are disillusioned to continue
with this scheme.
The Reason For
Which The People are Disillusioned-::
The main reason why the people did move with a GREAT
hope for the scheme to the various Bank and the reason why the people are so FED-UP
with this schemes are illustrated under-:
COVID-19-:: The
epidemic COVID-19, which came up like nothing and which spread itself like
anything forced the enterprenuers to give away their petty business as the
business was not at all there during the pandemic. Millions of the small and
petty business owners gave up their
business and the job.
The Small and the Petty Scale small units also ended up with
the same. There were many, many and many a business which had to shut their
business. Anyhow the Provident Fund and the Gratuity was paid by these business
class of the business that they were
into. The personnel’s who were asked to do away and go away from the jobs and
them who received meagre salaries, got the PF that ranged from Rs 1.50 lakhs to
about 3.0 lakhs after putting in about 20 to 30 years of service.These
personnel’s were aged between 55 to 58 in most of the cases.
Hearing to the S.I.P and the returns for the year 2019-2020
when this schemes started, they rushed to the banks and invested their money in
the scheme. They were shocked to learn that they would have to pay Rs 3,000=00 per month for about six different times in
this scheme to keep the business rolling. THIS WAS NOT EXPLAINED AND TOLD TO THESE
INVESTORS BY THE BANK AT ANY TIME WHEN THEY OPENED THEIR ACCOUNT WITH THE BANK.
Incidentally these people could not pay that Rs 18,000=00
extra for six mounts, mounting to Rs
3,000=00 per months . Obvious if it is and if one has to think. WHERE
WOULD THE EXTRA Rs 3,000=00 PER MONTH WOULD COME TO THESE WHO HAD TO LOOSE
THEIR JOBS BECAUSE OF THE COVID. Now, if one goes at the age of 60,
or 58, 0r 55, to search a job for him,
WHO WILL GIVE HIM A JOB AT ALL AT THE AGE OF 55, OR 58, OR 60.
If at all if one has to pay an amount of Rs 3,000=00 per
months for six months, one will have to find a job atleast to be paid Rs
3,000=00 per month and WHO
WOULD GIVE A JOB TO ANYONE AT THE AGE OF
,IE, ONE WHO ATTAINS THE AGE OF 55, OR 58, OR 60 .
The banks for NOT having received that amount after ONE full
year returned the investors their dividend at a rate of 11% as the maximum and
maybe in some cases at the rate of 8 to 9% at the minimum, and this has made
the investors to loose all their interest in this scheme. Also if forced by the Banks to keep a minimum balance in the saving accounts, or forced to open a FD in their respective banks, the saving account and it's amount as well as the FD were amalgamated by the banks to run this business. This also has aggravated the investors like anything and the WORST in this case is the ICICI Bank and with it all the private playing bank.
2). The RIGID, one end and ONE mindset policy of the Bank-:
The Indian bank
operates at the minmum risk that it wishes to take beside a very worst MINDSET
when it comes to it. They DO
NOT EDUCATE THE INVESTORS IN MINUTES AND IN DETAILS IN THEIR COMPLEX
BECAUSE THEY OUGHT TO CARRY ON THEIR OTHER UNITS IN TERMS OF THE DAILY JOBS
THAT THEY HAVE TO DO.
Fulfilling the target and completing it’s assignment by any
case is their MOTTO. They follow their fixed rules in any case and the
rules keeps on changing.There is a FLUID-MOBILE changes in the banking
procedures that the Bank every day puts it to the personnel’s but these changes
are never brought to the notice of the customers or the investors at any point of time. The bankers
just do not break the ever changing set of policies and the rules that comes
into the regulation .This is the PRIMARY REASON why the S.I.P has FAILED in the
year 2020-2021 and the people have lost their interst in this schemes.
What Should The
Banker Do:: This Is A “ ADOPTABLE ”
Policy
Here the banker should have operated like the Birlas, the
TATAS, or the Ambanis or the Adani’s do. These organization do everything to
RETAIN their shares of the customer in the market and they go ALL-OUT to first
make their policies flexible and adaptable to change their business looking
into the loss that the business would suffer and then after balancing the onset of the loss that their business would
suffer, they charge the valued customer to offset the loss and make the
customer happy to retain them in their folds.
In the case of the S.I.P when the people were not in the
state of paying those Rs 3,000=00 per month for six months as the instalment to
carry on with the business, to help the
banks to it in the share market, the Bankers or the various banks should have
put their own money on every such valued customers and at the end of the
maturity period after one year, when the customer would visit them to withdraw his investment and the returns on it,
the Banker should have deducted the money in this manner-:
A ) . Service Charges Paid By The Banker For The Customer
For SIX Months @ Rs 3,000=00 per month = Rs 18,000=00 ( A )
B ) . Cess Charges
Applied On The Service Charges As The Service Provided By The Bank To The
Customer = Rs 7,500=00 ( B ).
C ) > Returns
Of Investment To The Customer After One Full Year = Rs 6.83 Lakhs ( say
) – Rs 25,500=00 ( A + B ) = Rs
6,83,000=00 – Rs 25,500= Rs 6,57,500=00 .
This is how the
very PROFESSIONAL outfits of the Indian business industry does the business,
first by pouring in and putting in their money for the valued customers and
then taking it back in a very systematic “ PROFOUND-ORDAINED-PROFESSIONAL ” MANNER.
The Note Of Concern :: No Body Will Pay You " 100% " Plus And Above In One Year On Your Investment
It is a MYTH that either the Mutual Fund or the S.I.P will pay you by 100% plus over the principal amount invested in one year. Mutual Fund is a scheme somewhat added on with some extra benifit which could be termed as the fixed deposit which gives you between 8% to 11 % of returns per annum. It is a fixed deposit with some kind of a mirage to hook the customer by the Bank to fix their money in their Bank, it could be any bank. By chance if you are not signing the ECS forms, which at the time of opening this scheme of investment in the bank, then your Fixed Deposit if any in the same bank, without your knowledge and permission is attached to this scheme, and at last you find that your Fixed Deposits with the bank are trampled upon. One has to be very careful while investing the money in this scheme in these Bank , especially the private playing bank.
As far as the case of S.I.P ( Systematic Investment Plans ) are concerned , it is a mirage again and it is simple and simply a recurring deposit account , where you have to keep on paying some amount every month, which could be as high as Rs 3,000=00 per month as instalment, just like you keep on paying the instalment in the recurring deposit , and this you will have to maintain it for a very long period of say 15 to 20 years if in case you will have to make the CHERRY and the JUICE of the same in a go to enjoy your investment.
These are basically nothing but an eye wash. If you do not know and learn all about the scheme and by mistake, if you put your money in any private playing banks, where to lure the customers, they always pay the interest more by 1 to 2 percent, if you fall into their trap, you would be taken for a ride.
Not that your money would go off the air, but at last you would feel that IT WOULD HAVE BEEN GOOD IF I HAD KEPT THIS AS A DEPOSIT IN AN NATIONALISED BANK RATHER THEN GETTING FOOLED BY THESE PRIVATE PLAYING BANKS.
If the bankers had followed this, which the private playing bank hardly follows, and had done this as a
procedure and if they had exercised their duties as a devotion to their valued customer, definitely
the CUSTOMER and the BANKER would, both have been the
winners. It would have been a WIN-WIN
situation for both and this would have been the best, the very best for both
the banker and the customer.
However here in India, the Indians always, SLANGS
the Tatas, Birlas, Ambani and the Adani always by using all the bad and unparliamentarily
languages, attaching them to the Modi's and the Amit Shah's who helps them to swell their total but it hardly realizes the fact that how these business units, that I have mentioned here, go to the extent
of retaining the customers for their business and again infusing all the hopes
in the mind of the customers to continue with them for the business.
The LANGUISH one way mindset of the banking business does
not thinks of the business in that manner and it does not changes itself as
well do conduct the business. At the last the customer draws himself out of
these business units and the loss is to the Government as well as to these
units.
Advise To The
Bankers For the S.I.P-Mutual Funds
Business For the Year 2021-2022-:
It is a fact that those who received Rs 6.83 lakhs as RETURNS OF INVESTMENT
from the business and the transaction of the S.I.P for the year
2019-2020 will never be satisfied at all if they have to receive Rs 33,000=00
as the returns for the next year from this S.I.P-Mutual Fund business. This is
the reason that the people have lost their interest to invest their money,
especially those who are senior citizens, and those who have been forced to
give up their jobs after they has to face the ire from the Covid-19. However I once again say that no banking community does the GREAT of doubling your principal amount to 100% plus in a span of one year- AND BEWARE of investing your money rather than doing it with an closed eye belief.
It is best advised to the Bank to follow the kind of a
system to regulate the business as I have mentioned here. The people will be
happy to pay the charges as well as the Cess charge to the Bank if they get a
very good amount as a bounty for this kind of service and returns from the
Banks for the S.I.P-Mutual Fund business. IF NOT THE BANKS WOULD SEE A HUGE
HUMONGOUS AMOUNT OF MONEY BEING TRANSFERRED BY THE CUSTOMER, OR WITHDRAWING
THAT AMOUNT INVESTED IN SOME OTHER SCHEMES.this would be a HUGE-LOSS
to the Government as well as to the bank beside the SHARE MARKET which infact totally
depends upon ther money invested by their customers for the share that they
sell.This also would hit the business industry the HARDEST which sells their
share at the share market.
Impact Of The Fall
Of The S.I.P-Mutual Fund Failure
And It’s Repercussion On The Economy - ::
Overall there would be a tremendous jolt that the market
would receive and the INFLATION as well as the LENDING RATES of
the bank would take a nosedive and a WRECK-DIP which will
completely put the entire economy in the DOLDRUMS .
The “ MEASURES ” That The R.B.I-Government –Banks
Ought To Take
The R.B.I has to advise and direct the bankers about to
first put their own money on the instalment that measures upto Rs 3,000=00 per
months for the number of the months that this amount ought to be invested by
the investor. Then they can charge the customer for the same as explained and
can also charge the cess amount which should be not more than 50%
of the instalment amount that is needed to be paid for six months . This will
help the valed investors as well as the Banks.
The Government should regulates this scheme properly as the
share market and the inflation as well as the money that the Government earns
through this scheme, will either prove to be a HIT, a BOOM
or else a national disaster in economy would follow.
AFTER THE MATURITY PERIOD, THE BANKERS AND THE GOVERNMENT SHOULD
INSPITRE THE PEOPLE AND THE INVESTORS TO AGAIN INVEST THE PRINCIPAL AMOUNT IN
THE SAME SCHEMES. This would help the business of the banks, the
business of the share market and overall the business of the Govermnet to
regulate and control the money market beside maintaining the inflation as well
as the regulations of rotating the money in the business.
This will provide a suitable source of income for the
citizens over 55 years of age , and the senior Citizens to maintain themselves
.
It is said that- THE BUSINESS OF THE GOVERNMENT IS TO KEEP
THEMSELVES OUT OF THE “ BUSINESS ” UNLESS AND UNTIL THE BUSINESS REQUIRES THE GOVERNMENT’S
HELP.
The people of the country who have invested their amount as
the investment in the Government’s and the private Banks do really now require
the Government help.
The Government ought to rise.
Failures, once does not means that the scheme or the project cannot be turned into an overwhelming success .It very well can be and there are 1000 and many a thousand examples and cases of the same..The S.I.P-Mutual Funds were a disaster for the investors for the year 2020-2021. This can be turned into a SUCCESS OF IT'S OWN KIND.
THIS ONE TOO COULD BE THE " GOLD " PROVIDED THE GOVERNMENT AND THE BANKING SYSTEM IS " BOLD "
How it could be done- well, the example is laid for the eye to read.
That is it
Regards and Thanks
Pics
Shyamal Bhattacharjee
Mr Shyamal Bhattacharjee, the author was born at West Chirimiri Colliery at District Surguja, Chattisgarh on July 6th 1959 He received his early education at Carmel Convent School Bishrampur and later at Christ Church Boys' Higher Secondary School at Jabalpur. He later joined Hislop College at Nagpur and completed his graduation in Science and he also added a degree in B A thereafter. He joined the HITAVADA, a leading dailies of Central India at Nagpur as a Sub-Editor ( Sports ) but gave up to complete his MBA in 1984 He thereafter added a Diploma In Export Management. He has authored THREE books namely Notable Quotes and Noble Thought published by Pustak Mahal in 2001 Indian Cricket : Faces That Changed It published by Manas Publications in 2009 and Essential Of Office Management published by NBCA, Kolkatta in 2012. He has a experience of about 35 years in Marketing .
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