Recognize the Characteristics of Stupid Investments

Recognize the Characteristics of Stupid Investments – For those of you who want to start an investment, surely you will try to choose the best investment and of course it is safe and reliable. The following are some of the characteristics of fraudulent investments that you should avoid:

1. The benefits offered are very high
The first characteristic of fraudulent investments is to offer profits or returns that are too high. Sometimes the return or profit is not logical. Basically, the return on long-term investment is around 15 to 20 percent, even that is uncertain.

So, if the benefits offered from the investment are more than that, then it is suspect. To avoid this, you can compare the benefits offered at bank or deposit interest rates. If the benefits offered far exceed the interest and deposits, then the offer could be a fraudulent investment.

Recognize the Characteristics of Stupid Investments

2. Offer short-term benefits
The next feature of fraudulent investments is the offer of short-term profits.

Please note that the basic principle of investment is that the shorter the investment period and the smaller the risk, the lower the profits. On the other hand, the longer the investment period and the greater the risk, the greater the possibility for profit.

In fraudulent investments, you will usually be offered to get big profits in a short time with minimal risk. So, you have to be careful. You can explore the knowledge of the investment itself.

Also Read :Mistakes to Avoid in Gold Investment

3. Problems with legality and licensing
Before the company operates, of course, it must have a valid permit and its legality is known. Likewise for companies that offer investment products. In this case, permission from the Financial Services Authority (OJK) is very much needed and mandatory.

However, fake investments usually run independently and there is no official permit from the OJK. Therefore, before investing, you need to first check whether the investment has received permission from the OJK or not.

4. Investment products are not clear
In fraudulent investments, usually the products offered or even the company you can’t find valid and clear information on through the official website.

Even when you ask for detailed product and fund management explanations, they will give vague and circular answers. In essence, you will be urged to immediately hand over the funds and after that there will be no news. Therefore, you can check the legality on the official OJK website.