Beware of Guaranteed returns on Investment schemes

I call them schemes because that's exactly what they are. The schemers talk you into a seemingly win win investment, guaranteeing unbelievable returns. You buy into it, sit back down and then the waiting game begin. Before long, you realize you've been duped and the investment Gurus have closed shops. Then your troubles begin.

Recently I was reading about this investment firm that was specializing in Forex trading somewhere close to Nairobi. These guys duped investors billions of shillings then just jumped ship and authorities are trying to locate them. Some things I considered red flags the first minute I heard about their operation were, guaranteed returns on your money after about a month and so on and so forth. Well am writing this blog to educate my readers on some things they need to look out for or consider when trying to find worthy investments.

1. Never buy into an investment that promises you guaranteed returns. Investments are risky and no one really knows how a security is going to perform.

2. Only invest money you can afford to lose. While most brokers and financial advisors will try hard to make your portfolio grow, nothing is ever a guarantee.

3. Invest conservatively first before getting into speculation.

4. Use multiple tools of investing like stocks, forex, bonds, mutual funds and so on. In other words, diversify your portfolio.

5. Lastly do your due diligence. Don't invest blindly.