This year, the Financial Literacy Week by RBI focuses on “Consumer Rights” to educate consumers about the crimes by investment fraudsters and how they should always be on a lookout to never fall into such schemes.
Thinking about securing your future always tends to aim at an understanding spree about investments. Sometimes though, we come across hard-to-believe schemes in the name of banks associated with it. Here’s a quick tip: Do not fall prey to these kinds of activities. Understanding investment plans are realizing that higher the returns, higher would be the risks- that is the principle. But one needs to grasp that higher returns may come with higher risks but higher risks might not necessarily always come up with higher returns. You must understand that it’s the market time you enter and not your timing in the market.
Before understanding the fruitful returns, be wary of the sources you plan on investing in or with. Investment frauds generally pose as a wide range of deceptive practices used by scammers to entice investors into making blind investing decisions. Given the game-changing ways of fraud each day, investment frauds generally follow one or all traits listed as below:
High ‘guaranteed’ returns-
Let’s face it, the principle says higher the returns, higher are the risk?, but even then is no guarantee to it. So, if a scheme claims to guarantee your returns portion- do not engage further with it.
High initial investment-
This is like a Ponzi? scheme. Here, investors are lured to invest large sums of money because the returns received are chunks of their own money as there is no other source of income.
Vague/complicated investment strategy-
At all times, financial experts always advise on investing in schemes that you understand properly, in and out. Now, when a representative approaches you with a scheme that you try to understand better and in return get a more complex version of it- you are probably talking to a con man.
Unsustainable business model-
A company promising you incredibly high returns should ideally have a sound business model with proper affiliations. If the story sounds odd or fake to you- simply walk away.
Being generous by paying back of losses-
When a representative says that he/she shall pay any losses if incurred from their own pocket- you definitely should run towards the door.
So, what can you do?
Ask for proper regulatory approvals
A registered company will never give an entity permission to mobilize public money. It needs approval from either Sebi or RBI.
Do your own research of the company and the scheme
Do not hesitate to ask one of your trusted financial consultants, consult your friends and search on the internet about the company and the scheme for any consumer reviews. If you are in doubt, better to avoid.
Do not issue cheques in the name of a third party
Always issue payments in the name of a bank or an institution and not towards any individual or third party. Also, remember never to issue blank cheques or sign on blank papers.
Ask for regular account statements
A genuine investment scheme will always provide account statements at regular intervals, either monthly, quarterly, half-yearly or annually. If it isn’t doing so, something might be wrong.
Match performance with stated investment strategy
The performance of your invested scheme must be in line with the returns promised. If not, investigate and if needed, take necessary action by reporting the case.
Now that you know, be alert of the frauds that claim fast money with your hard earned income. Share this knowledge with others and let’s unite with RBI to spread financial literacy this Financial Literacy Week 2018.
Quest bars cheap fitnesstipsnew1 quest bars cheap 516999410492780544 quest bars cheap
Good post! We are linking to this great post on our website.
Keep up the great writing. Quest bars cheap fitnesstipsnew1 quest bars cheap 516999410492780544 quest bars cheap
Thanks in favor of sharing such a good thought, article is good, thats why
i have read it fully
I love reading an article that can make people think.
Also, thank you for permitting me to comment!
Thank you a lot for sharing this with all people you actually realize what you are talking approximately!
Bookmarked. Kindly also consult with my website =).
We may have a link alternate agreement among us
I simply could not leave your web site prior
to suggesting that I really enjoyed the usual information an individual supply in your guests?
Is going to be back continuously to check out new posts
Descargar facebook
Admiring the time and effort you put into your blog
and detailed information you present. It’s nice to come across a blog every once in a while that isn’t the same out of date rehashed information.
Great read! I’ve bookmarked your site and I’m adding your RSS
feeds to my Google account. Descargar facebook
I travel all around the world for work, and it used to be really lonely. Now I can go onto Tinder and have a date lined up in a new city before I even get out of the airport!
hello!,I really like your writing very so much! share we be in contact extra
about your post on AOL? I require a specialist
in this space to unravel my problem. Maybe that is you!
Looking ahead to see you.
Great post. I’m facing many of these issues as well..
Hi would you mind letting me know which web host you’re working with? I’ve loaded your blog in 3 different web browsers and I must say this blog loads a lot faster then most. Can you recommend a good web hosting provider at a fair price? Cheers, I appreciate it!
Good way of explaining, and good piece of writing to obtain information concerning my presentation focus,
which i am going to deliver in college.
Excellent blog you have here.. It’s hard to
find excellent writing like yours nowadays. I truly appreciate people like you!
Take care!!
I believe what you posted made a ton of sense.
However, what about this? suppose you added a little information? I
ain’t suggesting your content is not good, but what if you added something that grabbed a person’s attention? I mean Risk Vs Returns- Be Alert Towards
‘Quick Money’ Investment Schemes – Blog is a little vanilla.
You should glance at Yahoo’s home page and watch how they write article headlines to get
viewers interested. You might add a related video or a picture or two to
grab readers excited about everything’ve got to say. Just my opinion, it
could bring your blog a little bit more interesting.
It’s difficult to find well-informed people for this subject, but
you sound like you know what you’re talking about!
Thanks
This is really interesting, You’re a very skilled blogger.
I have joined your rss feed and look forward
to seeking more of your fantastic post. Also, I’ve shared your web site in my social networks!
Hi there, I enjoy reading through your post. I like to write a little comment to support you.