147;Product buying should be need-based148;

How should a person choose funds?
Go for five star ratings of funds. Go for consistent performance. Not good performance in current period or even one year, but if a fund gives consistent performance over five years that is the fund to buy.

How should insurance be bought?
If you are young, then go for strong insurance. A ULIP is a good idea for those who are not very smart as investors. Only the really educated investors should buy term and invest the difference in funds.

The distributor is the weakest link in the chain, says the financial sector. They push products on commission and not according to need. What can be done to change this?
We need regulation of distributors in India. Just as brokers are registered with Sebi, so should distributors be registered and malpractice be dealt with. The biggest problem is that the culprits get away. The legal system must work, immediately work. The entire regulation needs to be more transparent.