Investor Presentaiton

Authority Relevance of investor education - Investors' perspective Education & Investor Protection IEPF As stated in the definition of Financial Literacy, Investor/Financial education is necessary for making sound financial decisions and ultimately achieving individual financial wellbeing. Investor education is helpful for investor in making better assessment of relevance and suitability of the investment advice, investment products and services. This is really helpful, when there are numerous advisors who promise great return from investment. Thus apart from guiding investors in making investment decisions for their financial well being, investor education is required for investor protection as well. Case study - keeping FD with bank (how risky is it? - Depends, whether the FD is with SBI/HDFC or Cooperative bank like PMC) It is expected that investor education will make the investors Aware of the (financial) risks they are confronted with and be able to estimate the amount of savings and investments they will need to meet their own needs and those of their family; ■ understand the balance of risk and reward relative to saving and investment products and their costs; ■ recognise that market fluctuations are normal; and, acknowledging their own limitations, know who to trust to provide unbiased, objective advice. ■ better equipped to recognise and avoid fraud and scams. help investors, detect and avoid suspected fraudulent activity, and distinguish between regulated and non- regulated activity, all of which could reduce investor losses. As a result of sound investor education, it is expected that consumer complaints will reflect genuine breaches in consumer protection and regulation, reducing the burden on ombudsmen and consumer complaints bureaux caused by consumers misunderstanding their rights and responsibilities and increasing the speed with which genuine problems are resolved. Prof. Kamakhya Nr. Singh, IEPFA Research Chair 12

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