Who do you seek financial advice from A Banker or a Financial Adviser

[lorenzoleo]

---

Do you know that most of Bankers don't know about Mutual Funds?
It sad but it is true, only the upper management of the bank knows well what Mutual Funds are and where the money of banks invested. I hope my friend will realize that his banker doesn't give him sound financial advice. T_T!

If that Banker is well financially educated enough, he would rather recommend Mutual Fund for growing money.
Lessons learned just seek advice to people who have the credibility and have the results in terms of growing money.

learn from the experts with credible background in financial industry 'Can my mutual fund NAVPs drop to zero?' - Money Smarts. I hope his banker is also wealthy that gave him "good" advice.

“Most mutual fund companies’ holdings are in blue chips, government securities and bonds, For the NAVPs to go down to zero, all of these shares will have to be worthless. That has never happened before and I daresay it will take for the earth to stand still for that to happen. If a company folds up, it will still be required by law to pay its shareholders,” he said. “There is very low probability that that will happen, but it depends on the funds. The question that you have to answer is what are the chances of ALL held stocks being worthless or delisted? It will take all companies in the portfolio folding up. It’s queer but the chances may be higher now in bond funds, especially if all bond holdings will be unpaid. But even subprime loans and credit default swaps have discounted values. So there is still a redeemable base and not zero. With Philippine mutual fund holdings as they are now (blue chips and sovereign debt), it may be close to impossible to see this zero NAVPs happening. It will only happen because of fraud in management or the country becoming a communist state,” said - Rex Mendoza, Senior VP AyalaLand.

Do you know that some top shareholders of some mutual funds are big commercial banks in the Philippines that have around 100,000,000+ shares owned? Refer to your annual shareholders meeting report, you will know what are these big commercial banks that invested into Mutual Funds. T_T! I hope his banker gave him sound financial advice and don't loss money with inflation. T_T!