How to identify fraud investment schemes and stay away from them

Have you recently received any offer to get very high returns on your money? Wait, it can be a scam, check these things before investing your hard-earned money.

First, ask a few basic questions (as mentioned below) to know about the genuineness of the company.

 

Few questions/details we should ask the Company:

1.     Is the company registered in India, what is the registration number?

2.     Where is the registered office of the company?

3.     Who are the Promoters/Directors of the Company, their PAN, AADHAR and DIN?

4.  Has the company received permission/license from RBI/SEBI to collect money from the Public?

5.     What is the main business of the company?

6.     How long has the company been in this business?

7.     Is this business/trading legally allowed in our country?

8.  At what price did the company buy and sell assets (crypto, forex, commodity, shares, etc.) historically and consistently to make such a huge profit?

9.     Get the last three years’ Annual Report of the company.

10.  If something goes wrong then to which Govt Authority i.e. RBI/SEBI you can complain.

Apart from that, we should also know a few basic characteristics of these type of companies and how to identify them.

Do You Know:

1.     Most of these schemes also offer a referral commission if you introduce any investor to them. This is how the multi-level marketing /Ponzi schemes work (search about Ponzi schemes on google).

2.   Suppose you have been offered a 5% monthly return and 2% commission on referral. This means 84% annual return, if we add the company's expenses & profit then it must earn more than 100% to remain in business,  is it really possible when banks offer just 5-6% returns?

3.   Crypto Currency/ forex/commodity/equity trading etc. are very volatile and cannot offer any fixed returns. Hence if someone promises such a high guaranteed return he might be just trying to scam it.

4.    These schemes may give promised returns for a few months to attract more investors but at the end of the day, most of the people won't get even the invested amount.

5.     If anything is too good to be true, better to recheck by a trusted financial expert.

6.  Most of the people get into these schemes out of greed and to make a quick buck, but remember there is no easy money in life.

 

Remember "21 din main paisa double"  in the famous movie PHIR HERAFERI  of Akshaya Kumar, Paresh Rawal, and Sunil Shetty. Even in the movie, the money couldn't be doubled so fast... and this is the real-life....

 

Always remember there is no shortcut to become wealthy and successful.

 

An investor awareness initiative by Deepu Awasthi

Contact at 8850443341 / deepu.awasthi1@gmail.com  for more details