Crowds Gather at Torres Building in Dadar West After Fraud Scheme Exposed; Police Deploy Security |
| FPJ/ Vijay Gohil
Torres Jewelery’s alleged scam involving Rs 1,000 crore and the money of about 1.25 lakh investors in Mumbai has made headlines and raised concerns amongst myriad investors in the city and the country at large.
The scam first came to light when a vegetable vendor from Nariman Point in southern Mumbai lodged a complaint at the Shivaji Park police station.
The revelation of this massive, alleged Ponzi Scheme has brought fiscal vigilance and need for awareness to the fore again.
Here are some of the aspects, that investors need to look out for, when investing their hard-earned money.
Loopy and Loft Promises
One of the key elements of this entire saga was the promises of lofty returns. Investors were promised interest rates of 6 per cent to as high as 13 per cent. This, as per many is the first sign of something being amiss. To able to produce resources for a 6-13 per cent interest rate, a company in question will have to have access to resources and revenue that could give those return.
Business Model
From the lofty promises, we come to means for these companies to attain their big number. The business model, or the channel through which these companies manage to add to their revenue, therefore becomes crucial. If the business model in question does not appear to be sound or fiscally irrational, then one should lool away from such companies.
Transparency
Trust as they say is earned. Trust can only earned when there is greater transparency between parties. One has to be clear about the terms of the schemes of investment tools. Read and understand all the documents in place, question any aberration that is noticed.
Consult Professionals
When its comes to investing their hard-earned money, trust is essential, and one has to be cautious and look at all the avenues to verify the reliability and viability of these companies. One must consult professional financial services and regulators to access the right information, before making a call on the investment.
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Other Investment Avenue
Given the diversity in the system, one could and should try and explore all avenues in the investing realm. From equity markets to bond markets, to commodities, alternative are in abundance, and making a sound decision in the present is essential to constructing a stable future.
Patience
Just like Rome was not built in a day, your realm of dreams with profuse resources will not be built in a day. It’s day-by-day, drop-by-drop, that one builds their world. One has to be patient when investing in the markets, no matter what they avenues are. Stable hands and an astute mind are essential when making these choices. Expecting quick and landslide-like financial returns is unreasonable, and makes one susceptible to falling victims to such schemes.
