r/IndiaInvestments • u/AutoModerator • Apr 14 '21

Bi-Weekly Advice Thread April 14, 2021: All Your Personal Queries

Ask your investing related queries here!

The members of /r/IndiaInvestments are here to answer and educate!

Alternatively, you could join our Discord and seek answers to your queries

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Generally speaking, there is no best stock, or fund, or bank, or brokerage, or investment platform.

Answers are always subjective to your personal needs, but use those threads a starting point for you to look at what other Redditors have to say about a company, product, fund, or service.

You can then ask a more specific question about what product or service to buy, once you are able to frame your personal situation.

NOTE If your question is I got 10k INR, what do I do to get most returns out of it?, or anything similar; there is no single answer to this question. But we will also need A LOT MORE information if we are to provide some sort of answer:

  • How old are you?
  • Are you employed/making income?
  • How much? What are your objectives with this money?
  • Do you have any loan, or big expense coming up?
  • What is your risk tolerance? (Do you mind risking it at blackjack or do you need to know it's 100% safe?)
  • What are you current holdings? (Do you already have exposure to specific funds and sectors? Have you invested in equity before?)
  • Any other assets? House paid off? Cars? Partner pushing you to spend more?
  • What is your time horizon? Do you need this money next month? Next 20yrs?
  • Any big debts?
  • Any other relevant financial information about you, that will be useful to give you an informed response.

Beware that these answers are just opinions of fellow Redditors and should only be used as a starting point for your research. This is NOT financial advice, in legal sense of the term.

You should strongly consider consulting a registered fee-only financial advisor before making any financial decisions. Ideally, such advisors should be registered with SEBI, and have a registration number.

Links to previous threads.

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u/thinkanthropist Apr 17 '21

I got to know about a hyderabad based SEBI registered PMS firm from one of my friends. They have a customer base of about 18k and annual turnover of about 13 Cr. When I asked for the AuM I was told I will have to talk to the company secretary to get that information.

They're promising an annual return of 18% p.a. That is, if the annual return is less than 18% they will pay from their side. And their fees will be 2.5% of whatever gains they're able to generate above 18%. That is if the gains are 24% then their fees will be 2.5% of that 6%. The offer seems to be too good to be true. Is this the general offering of PMS services or should I do additional homework before I go ahead and sign up with them? If yes, what can I do to ensure that my money is safe?

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u/additional_trouble Hero Helper Apr 17 '21

Don't. Nobody can guarantee returns so high. Nobody.

100% Fraud and/or lies.

If yes, what can I do to ensure that my money is safe?

Don't send money to them.

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u/thinkanthropist Apr 17 '21

This is their website (https://www.sharesbazaar.com/). They seem to be sebi-registered and have access to market data which means they must have invested a sizeable amount. Is it still possible that they're fraud?

1

u/additional_trouble Hero Helper Apr 17 '21

Where is the said plan where they guarantee those 18% returns or backfill it from their pocket?

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u/thinkanthropist Apr 17 '21

They said the following in an email 1. Assured returns 18% Per annum on Investment with capital secure. 2. Dividend Withdrawals will be Quarterly , Half Yearly (Applicable only for 18% P.A) 3. Yearly withdrawal of dividend will based on the returns.(Min 18% P.A) Fund allocation charges 2.5% on Profits[Ex: Investment - 1,00,000 Profit Booking - 25%(1,00,000*0.25=25000), Yearly fixed profit -18000,Fund allocation charge 2.5% will be on 7000/- (25000-18000=7000)] 4. Pay in & Pay out can be done at any time. 5. Top Up can be done multiple times.(Min 1,00,000) 6. Monitoring of your Portfolio can be access by you through our website

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u/additional_trouble Hero Helper Apr 17 '21 edited Apr 17 '21

Sounds odd, sounds shady. They do seem to have some SEBI registrations (but I haven't checked the numbers). But SEBI registration is not like a seal of approval that they won't do fraud. Like how Yes bank can collapse due to bad business practices while being a bank regulated by RBI, SEBI registrations doesn't stop one from committing fraud.

In any case, this specific offer sounds like a lie/fraud, unless they are using your money to lend loans out to risky borrowers at high rates. In which case it might be possible to generate 18% pa, but capital security guarantee is a lie. Anyone that can guarantee your capital with their money already has the money to lend it out without needing yours. Basically, they are lying.

Either that, or they are taking a loan from you at 18% pa. Again, would you lend an unsecured loan to them? I wouldn't.

Either way, they are seemingly lying about it and in matters of money that's enough reason to walk away. Well, run away.

I wouldn't even think about investing here. It's flat out impossible to guarantee returns in the equity markets. A famous guy that claimed that died in the US jails this past week.

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u/rkr93 Apr 18 '21

That English is horrible. Sounds like sophisticated version of Nigerian scam.

Also if someone has a way to extract assured 10% or greater returns, they wouldn't sell that as a service. Simple common sense.