3 sources of bad financial advice: CA warns Indians to be careful about who they trust with their money; one may be sitting at home

Saving and investing money often comes with a lot of opinions from people around us. In India, financial decisions are sometimes influenced by family members, bank representatives or even people claiming they can make money grow unusually fast. But advice coming from a familiar person does not automatically mean it is suitable for your situation.

CA Nitin Kaushik, in a post shared on X, recently pointed to three places where Indians can regularly end up getting poor financial advice: relatives, relationship managers and people who promise to double money quickly. His post on X focused on a simple point — investors should understand why they are putting their money somewhere instead of blindly following someone else's recommendation.

Relatives may mean well, but that is not enough

Family members are often among the first people Indians turn to when they have questions about money. Parents, siblings, cousins and other relatives may share what has worked for them, particularly when it comes to traditional investments.


But personal experience is not necessarily a financial plan.

Kaushik highlighted some of the common advice people hear from relatives, including “FD kar lo, safe hai”, “property kabhi loss nahi deti” or “hamare neighbour ne isme double kiya”.

Such suggestions can sound convincing because they come from people who are trusted. The problem is that everyone's income, expenses, goals, risk tolerance and time horizon can be different.

An investment that made sense for one family member may not necessarily make sense for another person. Even advice that comes from a genuine concern for someone's financial security still needs to be looked at in the context of that person's own situation.

Relationship managers have another interest to consider

The second source mentioned by Kaushik is relationship managers.

Many investors interact with relationship managers while dealing with banks and other financial institutions. They may receive suggestions about investment products, insurance or other financial services through these conversations.

Kaushik's point is not that every recommendation from a relationship manager is wrong. Instead, he asks investors to remember who the person works for and how the financial product is being sold.

“They’re called relationship managers, but remember that they also work for the bank or financial institution,” Kaushik wrote.

He also pointed to commissions as something investors should consider before accepting a recommendation. If a person earns a commission for selling a particular financial product, it is reasonable for an investor to ask whether that product is actually the most suitable option for them.

That means investors can look beyond the pitch and ask basic questions about costs, risks, alternatives and why a particular product has been recommended.

Be careful when someone promises quick money

The third category is perhaps the easiest one to identify — people promising unusually high returns with little or no risk.

Promises of quick wealth can be tempting, especially when they are presented as an easy opportunity that others are supposedly already benefiting from. But high-return claims without a clear explanation of the risks should make investors pause before putting their money in.

Kaushik called such promises an “immediate red flag” and suggested changing the question investors usually ask.

“Don’t just ask, ‘Kitna return milega?’ Ask Where is that return actually coming from?”

The question matters because a return does not exist in isolation. Investors need to understand what the money is being invested in, what risks are involved and what could happen if the expected outcome does not materialise.

Understand the reason behind an investment

The larger lesson from Kaushik's post is that financial decisions should not be based only on who is giving the advice.

A relative may genuinely want to help. A relationship manager may have knowledge about financial products. Someone promising high returns may present an attractive opportunity. But investors still need to understand the product and the reason for choosing it.

Kaushik summed up the idea by writing, “Your money doesn’t need more people telling you where to invest. It needs you to understand why you’re investing there in the first place.”