Question

You have been offered the opportunity to get in on a once-in-a-lifetime investment. The returns will be very high, and your money is safe. Why is this not possible and most likely a scam?

Answer 1

The lower risk investments are the ones which are likely to provide a low rate of returns. With higher risk, comes a higher return. Risk loving investors invests in securities which provide higher returns and they are willing to take the high risk, which means that our money is subject to uncertainty and we can suffer huge losses. In case of investing money in safer options, the investor is mist likely to earn lower rate of return.

If a particular scheme is promising to give higher returns with safety it is most possible a scam. It is soundIng to good to be true, hence the investors should do propRr research before investing in such scams.