Learn the Warning Signs of Investment Fraud: Flag High Returns at Low Risk
It’s easy to spot Investment fraud when you know what it looks like. You could be approached through text, email, phone calls, or in groups or financial courses. There are clear warning signs. Protect yourself by knowing them. Ensure anyone offering financial advice or investment products is properly qualified.
Throw some hard facts onto a scammer’s outrageous promises. The well- known ‘risk-return relationship’ means that, in general, higher-risk investments offer higher potential returns; lower-risk investments offer lower returns.
There’s no guarantee you’ll make money, and the risk rises with the potential return. The Ontario Securities Commission posts bulletins about active frauds in Canada.
Do your research. Determine the range of return you can reasonably expect with different investments. For example, current GIC rates can guide you about typical investment returns for low-risk investments. If you are promised higher returns, expect the risk to increase accordingly.
Make certain you can trust the advice you receive. Your FORTAX Financial Advisor is trained to help you find the best potential investments. Your advisor can help determine if an opportunity is suitable for your investment goals and falls within the reasonable, expected range of performance for the risk you are taking.
Protect yourself and your hard-earned money by becoming a smart financial and investment consumer. Your FORTAX Financial Advisor can help you verify the legitimacy of any opportunity you are considering.