Is there such thing as a fixed return investment?
Question by megtol: Is there such thing as a fixed return investment?
A friend of mine is involved in this company, and I’m trying to convince him that it is a scam. Despite my best efforts, he persists to try to convince me that they are willing to risk their own money to back the capital of their investors. Can anyone give me a well reasoned opinion as to why the business model of this company does not work?
www.altreeinvestments.com
It is not a mutual fund, and they claim that the money is accessible without penalty. If you look on the website I posted, it shows a diagram of what they do under “The Altree Difference” and then click on the “The Guarantee”. They claim that even if the portfolio suffers, the same return will be paid out of company profits. This is the part that bugs me. If they have to pay everyone out at the same time when the portfolio falls apart, isn’t someone at the bottom going to get fucked?
Best answer:
Answer by Its only me.
I do not understand it but I have heard this radio commercial for weeks now that guarantees you a fixed return on your investment. It seems legit, but there is always a catch to these things somewhere,
You will not always be able to talk someone out of something, that is when you just shrug your shoulders and realize they are your friend but they are going to make their own choices. It may not be a scam but there is always a catch, such as high fees or your money will be locked in for so many years so you cannot touch it.
I purchase a stock that guarantees at least 10% growth, even when the market is down (like this past few months), but the catch is that you cannot sell this stock until a minimum of 3 years from purchase date. Thats the catch.
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Tagged with: Fixed • INVESTMENT/ • return • such • there • thing
Filed under: Business / Investing
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pl check if the company is a mutual fund; if so, it may prescribe a lock in period during which you cannot sell the stock. there may be a provision that the minimum guaranteed return may not be paid in certain situations. on the whole such offers are suspicious; you have to check very carefully for hidden traps.
Yes, bonds are a fixed return investment.
They may PROMISE a fixed return – that doesn’t guarantee that they will deliver it. I’d be very skeptical.