Reader’s Query: 10-20% Return per Month…

Reader’s Query: 10-20% return per month of Investment by Indian Companies.

Recently a reader has asked me a question that, “I have an offer to earn 10-20% per month of Investment by Indian Companies.”

Well, unfortunately more and more Ponzi schemes are coming in the market every day. What these schemes do? Well, they give the money of new Investors as a return to the old investors to gain the confidence of more new Investors and one day they fly away with your money.

While the Stock market is generating single digit return per year, how can any company make 2 digit returns per month? These type of offers are nothing but the sophisticated frauds and you should stay away from these types of Investment schemes.

After Bernard Maddof, the Indian Government has exposed several ponzi companies which were offering unbelievably high returns from the money of Investors. And now the Indian Government has started taking actions against these Companies.

Because of the lack of Financial Education & proper awareness, people believe in these types of high returns. I think we should focus on increasing the Financial IQ of whole the population of India. Because the Financial Education is the key to protect your self against such types of frauds.

So if the next time, if someone offers you this type of unbelievably high returns than BEWARE…!!!! Think 100 times before investing into such type of schemes.