There is a popular Chinese proverb:- "He who asks a question remains a fool for five minutes; he who does not ask remains a fool forever".
So before you "assume" anything, "Ask" pointedly about:-
1. Name of entity/ issuer whose product you plan to buy.
2. Name of your registered operator/broker whose name should appear on all papers which you receive as proof of investment.
3. Entity's accountability to government's regulatory authorities with proof of registration.
4. Documentary proof of a regulator's approval for the product, instead of private pamphlets, advertisements, hand-outs or presentations.
5. Detailed formal offer with entity's name, to know its legal existence and assure the scheme is not a concoction.
6. Details how your money will be used, its evaluation, how it will generate returns and where it can be tracked.
7. Company's business, if it is an IPO or a bond, and products where it will invest, if it is a mutual fund.
8. All your obligations towards your investment.
9. What can go wrong and where you will get such information.
10. Options and expenses if your financial situation changes.
So before you "assume" anything, "Ask" pointedly about:-
1. Name of entity/ issuer whose product you plan to buy.
2. Name of your registered operator/broker whose name should appear on all papers which you receive as proof of investment.
3. Entity's accountability to government's regulatory authorities with proof of registration.
4. Documentary proof of a regulator's approval for the product, instead of private pamphlets, advertisements, hand-outs or presentations.
5. Detailed formal offer with entity's name, to know its legal existence and assure the scheme is not a concoction.
6. Details how your money will be used, its evaluation, how it will generate returns and where it can be tracked.
7. Company's business, if it is an IPO or a bond, and products where it will invest, if it is a mutual fund.
8. All your obligations towards your investment.
9. What can go wrong and where you will get such information.
10. Options and expenses if your financial situation changes.