Be careful investing in mutual fund products. Get to know the 5 characteristics of fraudulent investments so you don’t get fooled.
Investments in the form of mutual funds are currently popular among Indonesian society. Various mutual fund products are available to choose from according to the investor’s risk profile. With these advantages, it is not wrong if people flock to invest in mutual funds.
It turns out that high public interest was exploited by certain parties to commit crimes. If they are not careful, investors can fall into fraudulent investments. Fraudulent investments are investments made in businesses that do not exist or are fake, so that the money invested by investors will simply disappear.
Usually, fraudulent investment managers will argue that the investment is a loss because the company is losing money or failing. So, if you don’t want to get caught in fraudulent investments, let’s look at the characteristics of fraudulent investment modes that you should avoid.
Unreasonable profits
Before you make an investment, usually the investment manager will provide an overview of the return or return on the investment you will make. For example, if you invest IDR 10 million, you are promised a return of around 15% per year. This means that in a year you can earn a total of IDR 11.5 million.
Well, fake investments usually promise very large returns, up to tens of times. For example, you are promised a return of IDR 500 million in a year for just an investment of IDR 10 million. These profits no longer make sense considering that generally the range of investment return values is not that high.
Does not have clear permission
Every activity in the financial sector, including investment, must have a clear permit. In Indonesia, the institution that oversees all these activities is the Financial Services Authority or OJK. Every investment activity must obtain permission from the OJK first. Well, fraudulent investments do not have this permit because these investments are unable to prove the validity of the investment to the OJK
Does not have a clear and complete prospectus
Talking about investing in mutual fund products, of course it cannot be separated from the prospectus. In general, a prospectus is a document that contains complete information about the mutual fund product in question. You can see the investment objectives, policies, limitations, benefits, and risks of the investment you will make in it. Don’t miss important information such as who the investment manager is and what his track record is.
The fund disbursement system is not clear
Fraudulent investments definitely do not have an easy and clear fund disbursement system. To find out how the funds will be disbursed, you can read it in the prospectus. Therefore, if the prospectus and fund disbursement system are not clear, you should be careful and not invest in this mutual fund product.
Investment managers are not certified
Another characteristic that may indicate that a mutual fund product offered is a fraudulent investment is the investment manager. Safe mutual fund products have investment managers who are certified and have official permission from the OJK. Bodong investments certainly do not have investment managers with such certification.