Advertising promises exposed: risks for investors are often concealed

Advertising promises exposed: risks for investors are often concealed

According to a report in the Frankfurter Allgemeine Zeitung (source: www.faz.net), banks' advertising brochures often promise high returns and security that cannot always be achieved in reality. In addition, some risks for investors are concealed.

Most banks and savings banks offer their customers asset management with funds. A mix of stock and bond funds is put together and adjusted depending on the market outlook. There are different variants of these portfolios, for example referred to as “stability”, “balance” or “opportunity”. The portfolios differ in the weighting of stock and bond funds, depending on how security or profit-oriented the investor wants to be.

However, it is important to note that the actual returns and risks of these fund products may differ from those advertised. Studies and analyzes have shown that the performance of many funds does not meet expectations and investors are often not sufficiently informed about the risks.

The impact of this situation on the market and consumers can be diverse. On the one hand, investors can be disappointed and lose trust in the banks and savings banks. This may lead to a decline in demand for these fund products. On the other hand, there can also be legal consequences if it turns out that the banks have deliberately concealed information about risks.

In order to analyze the impact on the market, the consumer and the industry in more detail, further information about the specific fund products and their performance must be available. It would be interesting to find out to what extent the funds actually underperformed the advertised returns and how big the risks were that were hidden from investors.

Overall, it can be said that in asset management with funds there is often a discrepancy between advertising promises and actual results. This can have various effects, ranging from a loss of consumer trust to legal consequences. It is therefore important that banks and savings banks provide transparent information and fully inform their customers about possible risks.

Source: According to a report from www.faz.net