The Indian government has recently blocked porn site but what about financial porn that is prevailing all over India? A word “Financial porn” may sound unusual to you, as many of you might not have heard about it. So, let’s explore the detail of Financial Porn.
What is Financial Porn?
Financial Porn is financial advice that lure the investor and excite them to invest in hopeless financial products. This term was first devised by American personal financial writer Jane Bryant Quinn.
- The most common example of Financial Porn is SMS or E-mail based stock market tips to buy and sell stocks. These tips excite investor to make investment in stock for short-term gains.
- Another example is make your money double or get rich quickly schemes.
A small illiterate investor will get attracted towards this type of investment scheme and risk their capital and financial goals.
Why Financial Porn Exist?
- Financial Porn Exist because of the lust of Investor. Today everyone wants to get rich quicker. Everyone thinks about instant gratification and in order to achieve it people is ready to take a blind risk.
- A brokerage house, relationship manager, Insurance agents know investor’s mentality and they take advantage of investor’s foolishness for their benefits.
- SEBI has imposed strict guideline and only SBI Registered Investment Advisor is authorized to give investment advice, however in order to save fees majority of investor avoid taking services from them.
What is impact of financial porn on investor?
- A Financial Porn creates unrealistic expectation and ultimately fools investor.
- Financial porn give short-term pleasure that could jeopardize their long-term happiness.
- Financial porn sometime leads to big financial loss.
- It sometime leads to big Financial Scams.
5 Sign of Addiction to Financial Porn
How to find that you are addicted to financial porn or not. Here are 5 signs that indicated that you may be at risk.
- If you buy stocks on the basis of SMS tips from a broker or stock analyst.
- If you are drawn to get rich fast schemes that offers extraordinary returns.
- You are signing on blank form given by Insurance agent touts a scheme as a good plan.
- Responding to fraudulent e-mail offering lottery prize declaring winner.
- If you listen to everyone including your friends and relatives who offers novel investment option and money-making ideas.
Top Financial Scam of India
As an Investor community how you can forget following biggest financial scam which eroded your hard-earned wealth.
Harshad Mehta and Ketan Parekh Scam
Harshad Mehta and Ketan Parekh is two well- known scams of the stock market where investor have lost a lot of money.
Sahara India Scam
Sahara India Scam is another well-known scam where investor lost 49,100 crores. Under this scam, Sahara India has issued “Sahara Housing Bonds” to investors without following SEBI regulation.
Sardha Scam
Sardha Group ran various fake investment schemes and collected money from many investors and cheated them.
Speak Asia
Speak Asia was online web-based company. They promised to pay big money for filling a short survey. Finally, they ran away by taking investor money.
The time has come to wake up and say goodbye to “Financial porn” and all potential scams.
Let’s take a pledge that we will become smart investor and take smart and informed decision for investment now onwards!
Jago Investor Jago!
