Fixed deposits, PPF, MF: 5 tips to follow before you invest in any scheme

Apr 23, 2018, 05:30 PM IST

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? 

(Pic: Pixabay)           



 Are they registered with a regulator like Securities and Exchange Board of India (Sebi)?

(Pic: Pixabay)           



Do you understand the strategy they deploy to generate returns? If not, stay away.

(Pic: Pixabay)           



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.

(Pic: Pixabay)           


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.

(Pic: Pixabay)