Sunday, September 30, 2007

Avoid "quick return" investments

Dear Mr Tan,

I am enjoying reading your Blog almost everyday. Great sharing and learn alot for you.

Someone actually approached me regarding to one of the MLM opporitunity. (Details deleted) Not sure whether have you hear of the company. But many people are investing their Broadband Wireless and Properties Projects.

The reward is excellant. For 1-GP investment (SGD 11800), the return is SGD 1200 per month.

Expecting to break-even within 8 month and get the extra Customer Rebate for the following months up to SGD 19200, Beside that within the 4 to 5 month, they will also give out USD 60000 bonus within 5 years.

Is this a good Investment opporitunity ?

MY REPLY:

I always avoid this type of "high return" investment. I also advise people to avoid investing in anything that looks too attractive, and where they do not really understand the business model. Some of these types of investments are scams.
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4 comments:

Anonymous said...

When something is too good to be true, it usually is not true. Remember and stick to this rule and don't be tempted will avoid losses and trouble later. Even if true on one side, it will not be true on another side and this is where it hurts. Applies not just to investments but other things in life as well.

September 30, 2007 10:45 PM
hongjun said...

For some MLM, if their business were to go bust, "shareholders" will not be able to get back a single cent they have "invested"! At least if you invest on stocks, ordinary shareholders will be able to get back their money should the company go bankrupt and there are surplus of cash to give out after preferential shareholders are compensated.

September 30, 2007 11:40 PM
Anonymous said...

Coincidentally, someone also asked me about this over the weekend and I did a search on the internet.

Found this alert list and the company mentioned to me was on this list.
http://www.moneysense.gov.sg/check_our_list/Consumer_Portal_IAL.html

Do be careful.

October 01, 2007 12:58 PM
Anonymous said...

Personally I am a Investor of the company. Wish me good lucky...

The Business Model is a crab.
- Investment with no proper documentment. They are not even interest to verify our particulars (i.e., NRIC, Name, Address). They are only interest in our money.
- No financial report to provide. If there is a Audit process, this company will shut down straight away. Worse than NKF case.
- The consultants are not SE employees. Any cheating cases, SE is not going to response to the cases. Many cases have occured.

If one day, the company shut down, a lot of people will suffer.

October 01, 2007 6:52 PM

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