How Investment Confusion Is Costing Kashmiris Their Savings

(MENAFN- Kashmir Observer)
Representational Photo

In Kashmir, where salaried jobs are limited and business is often seasonal, people are finally warming up to the idea of investing. But somewhere along the way, a confusion is hurting pocketbooks.

Ask around in Srinagar or Shopian, and you'll hear people say,“I've started investing in mutual funds through my LIC agent.”

The catch? It's usually not a mutual fund at all. It's a life insurance policy with a bit of market exposure, wrapped in financial jargon.

Mutual funds are straightforward. They take your money, pool it with others', and invest in stocks, bonds, or a mix.

You can start small, stop anytime, and withdraw when you need the money. It's flexible and built for growth.

Read Also Young Kashmiris Are Losing Lakhs in Fake Investment Deals How to Invest Without Losing Sleep

Insurance doesn't work that way. Term insurance gives a payout if something happens to you. Health insurance helps with hospital bills.

And then there are investment-linked plans, like ULIPs, that promise returns but lock your money in for years. You can't exit freely, and the returns are often modest after fees.

The bigger issue is awareness. In towns like Anantnag and Kupwara, agents often pitch insurance as“investment with safety.” People trust them, and that trust turns costly.

A young man saving for his sister's wedding might think he's investing, only to realise later that most of his money went into premiums and charges.

What Kashmir needs now is clarity. Not all financial products are built for the same goal. Insurance protects. Mutual funds grow. Both are important, but only if used right.

Before signing anything, read the document. Ask hard questions. Don't just rely on the agent's word.

Because in a place where every rupee matters, financial mistakes stay longer than they should.

• Disclaimer: This article is for information only and doesn't offer investment advice. It's not an endorsement or an offer to buy or sell any financial products. If you decide to act on the information here, you do so at your own risk

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