Ponzi Scheme

by Swetha Shenoy in General Discussions

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6 908 4.8k

12 years ago

#295432

But i would like to know,
before investing and when we donot know that it is a ponzi scheme,

what are the factors we look in before we invest? because mainly people are attracted to the lucrative returns!

How big is the company reputation. How much you are expected to invest in terms of time and money. Is it only MLM or commission on product sale also and finally the current pay cheqes proofs.. Many more factors can be there..
I was also invloved in it once.. But balance with both profit and loss... :) :)

Life is a box of Chocolate, You never know what you gonna get.... :)
www.InstantKhichri.blogspot.in

Gulshan Kumar Ajmani

3.48k 21.9k 176.9k

12 years ago

#295433

When the scheme benefits depend on introducing new members, this is ponzi scheme. There were such schemes 0in investment/finance and forest companies. These have big agents force operating at multi level. There are many levels of agents. Also, there is no clue as to where the company actually invests and how profits are generated. These companies neither earn nor distribute profits. They just go on collecting principal amount and pay on maturity from new receips of cash.

Our investments should be limited to (1) bank deposits (2) post office schemes (3) life insurance (3) mediclaim and accident insurance (4) provident funds (5) deposits and shares in profit making listed companies. Unlisted companies and those having no profit and dividend track should be avoided for any investment- even fixed deposit.

G. K. Ajmani Tax consultant
http://gkajmani-mystraythoughts.blogspot.com/

rambabu

1.49k 32k 218.8k

11 years ago

#302616

it is nothing but a fraudulent investment scheme

The investors are not paid the profit, but paid back their own money

it happens most of the time in chit funds or with friends

if i give u 5 rs and i expect you to give me rs 10, i get only 5 Rs or less

ha!

We an AP call them as 'Chittis'. Most of these are started by men keeping their women in the forefront. These women entice the other women in the street with higher interests and huge returns. One fine morning the CHITTERS ecape with the huge amounts collected from the innocent and gullible people. I keep myself at bay from these CHITTIES

Gulshan Kumar Ajmani

3.48k 21.9k 176.9k

11 years ago

#302668

it is nothing but a fraudulent investment scheme

The investors are not paid the profit, but paid back their own money

it happens most of the time in chit funds or with friends

if i give u 5 rs and i expect you to give me rs 10, i get only 5 Rs or less

ha!

We an AP call them as 'Chittis'. Most of these are started by men keeping their women in the forefront. These women entice the other women in the street with higher interests and huge returns. One fine morning the CHITTERS ecape with the huge amounts collected from the innocent and gullible people. I keep myself at bay from these CHITTIES

I remember that that an old man used to visit daily the air conditioned offices of almost every plantation company/ finance company and invest small amounts as recurring deposit. I asked him how secure his money would be. I got the answer that he knew money was not secure. But this was his past time. He had no job and and had plenty of money. He deposited only small amounts. This gave him opportunity to visit well decorated A.C. offices and enjoy chit chat with pretty girls working there.

G. K. Ajmani Tax consultant
http://gkajmani-mystraythoughts.blogspot.com/

RobertP

65 2.41k 13.2k

11 years ago

#302673

Couple of my friends lost around 15 lakhs (combined) in speakasia thing.

They have vowed never to invest in such schemes again. Also always look at the fundamentals. A legitimate business can only pay you if it earns money in the first place.

A ponzi scheme always depends on new members money to pay old members. Once that money stops the whole scheme falls.[/quote
15 lakhs too worst. Think how long it will take to earn. I think this post will alert others. Much apprections for giving this alert.

Born to express, not to impress.
http://royalrobsideas.blogspot.in/

Swetha Shenoy

121 1.94k 23.4k

11 years ago

#302720

I got to know about this scheme from the sitcom 'two broke girls' on star world,in which the lead heroine's father will be jailed due to involvement in Ponzi scheme

I hope someone must have watched the show!

Swetha Shenoy

Rajani K

145 7.14k 58.4k

11 years ago

#302725

This type of schemes are always risky and mostly chances of getting profit is less. Our maid often complaints about not getting money after investing in such schemes.. they call it chittis here...

Sharmistha Banerjee

32 2.76k 21.2k

11 years ago

#302829

Till now i have not fallen into such chit funds hands.Money is a great matter for everyone and before investing I just learn everything about the company.i spend in those company which are genuine and has good reputation in the market for many years.

Sharmistha Banerjee

rambabu

1.49k 32k 218.8k

11 years ago

#303799

But i would like to know,
before investing and when we donot know that it is a ponzi scheme,

what are the factors we look in before we invest? because mainly people are attracted to the lucrative returns![/quote

That's how you are lured into the trap. 'Lucrative or high returns are the bait. Many will bite the bait. My advise is go to Government companies only even if they offer low interests.

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