Wednesday, April 27, 2011

Don't let fraudsters take away your hard earned money

Just wish to warn investors against lot of schemes running in the market which assures returns more than market rates (Enclosed fate of one of such scheme investors). In last 1 month or so I have come across lot of news in news paper wherein people have been duped of 100's of crores and these are the figures related to filed complaints, otherwise actual figures must be much higher.

They run this business in Multi Level Marketing Formats wherein firstly you become member by depositing the money and then on every additional member referred earn commissions.

Just to list a few schemes which I heard of are :

1) Double your money in 3, 6 or 9 Months
2) Deposit Rs.750 and Get certain amount of Food Grains viz; Rice, Wheat, Grains and Oil actual price between 3000 to 4000. 3) Deposit Rs.19000 against which company will invest money in gold and will return you amount of Rs.150000 in 3 years by way of post dated cheques.
4) Give money to builders wherein they will give interest@36% and return your money in 5 half yearly installments. Interest for the whole term will be provided on initial capital investment without deducting for installments refunded.
5) Buy diamond jewellery by paying in cash and get the refund of full value after 2 years.

and the list goes on...........

This reminds me of the time when in U.P. there were people who used to pay big amounts for formulating such schemes. An example can be taken from movie "Banti and Babli".

Investors should use common sense while investing in any of the innovative schemes. An ALARM should ring immediately if you hear of such schemes. Always try to invest in the schemes which well regulated. So that if anything happens to your money, government will be there to support it. The best example for it is U.S.A., inspite of involvement of Big names in the scam, the govt had no option but to bail out them.

I would recommend you to consult a Certified Financial Planner or any person who you feel have good knowledge of various in and out of Investment instruments.

Please do share this write up with all of your dear and near one. If you have come across any of such schemes do update, so that lot of other people can be saved.