Assured Return Schemes: Key Considerations
Definition of Assured Return Schemes
These are investment plans where developers promise a fixed monthly return on your investment, typically seen in real estate ventures.
Potential High Returns
Such schemes often lure investors with attractive returns, usually higher than conventional investment avenues.
Risk Factors
- Project Delays: If the project faces delays, your returns might get affected.
- Market Downturns: Economic downturns can impact the developer’s ability to pay.
Credibility of the Developer
Always research the developer’s track record. Established developers with a good history are generally more reliable.
Legal Scrutiny
- Documentation: Ensure all promises are documented. Verbal assurances aren’t legally binding.
- Regulatory Approvals: Check if the project has necessary permits and approvals.
Exit Strategy
Understand the process and any penalties if you decide to exit the scheme before its maturity.
Hidden Costs and Terms
Some schemes might have hidden costs or conditions that can affect the returns. Read all terms carefully.
Market Research
Research the current market conditions. If the promised returns are much higher than the market rate, proceed with caution.
Conclusion
While assured return schemes can be lucrative, they come with risks. It’s essential to conduct thorough research and understand all terms before investing.