Fixed deposits, PPF, MF: 5 tips to follow before you invest in any scheme
Time and again, people fall for ponzi schemes due to their ignorance, greed and probably the lost out feeling.
What are the credentials and experience of the persons/institutions managing your money?
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Are they registered with a regulator like Securities and Exchange Board of India (Sebi)?
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Do you understand the strategy they deploy to generate returns? If not, stay away.
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How do the returns compare to the current fixed deposit rate? It is just not possible in today’s environment for anybody to generate even 10% return every month consistently. And keep in mind that only Fixed deposits, PPF and small saving schemes give guaranteed returns.
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What are the disclosures that the scheme will make? For e.g. in mutual funds, the portfolios are disclosed regularly and hence one knows where the investments are being done.
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