Beware of
Ponzi Schemes..!!!!
I was
travelling in the train from Mumbai to Ujjain. In the train compartment, I was
happily travelling with the fellow traveler. Although we never met before but
got very close to each other during conversation. We all were 4 persons
including me. All were between 30-40 year age group. One person was businessman
and other 2 were doing job in MNC. When they knew about my profession about
financial adviser then the subject of our discussion turned towards investment
and I was told that all of them had recently invested in PACL (Pearls Agrotech
Corporation Ltd), s deposit scheme. They were very happy after investing in
this scheme as the scheme were promising very high return than bank FD or a
plot subject to availability. One of very close friends of that businessman had
advised and forcibly done the investment. MNC employee had invested as their
boss had invested in that scheme.
I
cautioned them to invest in such type of schemes but they were very confident.
After all scheme was suggested by their very close friends. They all were very
happy and carefree about investment and told me that many people had invested
in this scheme and even you should also participate in this scheme. I have
refused their advice and warned them about these types of schemes in future. After
reaching destination we had exchange mobile no. and said goodbye to each other.
Before few
days I have received a call one of them and he had told me that you were saying
right the PACL was banned by court to collect further deposit from the
investors. Many times we all get trapped in such type of schemes after
emotional advice from our relative, neighbor, co-worker or companies agents.
Ponzi
schemes are schemes that makes the tall promises of high return which is many
time more than bank FD return on your investments and invest in opaque and
unregulated instruments. Often these types of scheme are not on the regulatory
radar.
I again
advise all of you please do not invest in any scheme only on the basis of
anyone’s advice, do your own homework before investing after all it is your
hard earned money and you have to decide where it should be parked. If anyone
offers you an assured high return product that offers more than simple bank fix
deposits, be alert.
Never
trust on oral promises read all term and condition and know about instrument
where your money would be invested and how the return would be generated. Check
the schemes rating and do not follow the herd mentality. Herd mentality means
many times you invest in the same investment of your best friends. Often they
told you their friends got great return and forced you to invest. Listen to all
advice but invest if it makes sense. Do not fall for those schemes that seem
too good to be true.
If you want more information
regarding investment or you have any other query about investment feel free to
ask us.
Warm regards,
Arvind Trivedi
Certified
Financial Planner
www.artofinvest.com
No comments:
Post a Comment