Most of the folks runs after shortcuts every time. First of all we need to know which FD, which scheme and which platform we should not invest in it. When you will understand this concept automatically you will be get a good returns from your investment. We most of the time run after fame, for example we run after crypto currency because it's famous. But first you need to know pros and cons then you should invest. Let's talk about some places where you should avoid to invest if you don't want to lose your hard-earned money.
1. ULIP Policies
ULIPs stands for Unit Linked Insurance Policies. We are trapped in it by hearing it will give insurance as well as also mutual fund returns. The disadvantages of this policy is very low returns, extremely high fees expenses and if you will died insurance will not enough that would help your family. People sell this policy very much because it is very beneficial to seller only.
2. Future and Options
It is a youngsters first choice because this scheme indulge youngster in dreams that get rich with a small amount. Because this scheme just work on luck. Many people will say that successful traders invest in it and they got rich. Don't trust on your luck nobody knows where and how you will be rich invest in assets not in liabilities.
3. Trading
Intra day, momentum trading or swings trading all these type of trading will destroy your wealth, destroy your money. You should ask questions from that person who sell these schemes that why don't he/she invest in these scheme and get rich in days. All these teachers just get news and earn their money by just fooling you. Don't trust in these policies.
4. Large Cap Mutual Funds
Large Cap mutual funds include 100 companies only. This is completely risky because not everyone have much luck to get 20% of stocks. Only 80% stocks can be chosen by fund manager that is just 100 large companies. In this situation it is completely difficult to get extra returns above market. A high fee will be given to stock manager. This will pay you costly. Don't take risks if you have better option. Shortcuts leads to distributions every time.
5. P2P Lending
Pear to pear lending. Many Clubs are rooted in market, many apps are created now that tells us they will give you extra returns as compared to FDs, for example 12% returns. It's is completely fraud. No authentication are given that how long apps will run. These apps don't tell the risks of your k investment just show us advantages. Because of this people trapped in it and destroy their wealth in these no serious apps.
To Be Continued........