Have you ever thought how an investment can change your world
? Its not that Im here to sell any investment scheme but to highlight the situations about the term investment in peoples mind. There are still many people that think investing is a bad thing and they prefer liquid cash over any investments. Things are slowly changing but still there are many people who follow the same. It would require more years till when people thinks investment as a part of maximizing their own wealth. As they always say investments are subject to market risk, read the offer documents carefully before investing.
Earlier there were many companies that duped customers off their money by mentioning things in the offer document but they didnt inform customers nor they were given time to either read the document. Hence the SEBI (Security exchange board of India) issued a notification that the every advertisement should precede with warning of investments are subject to market risk, read the offer documents carefully before investing. These made many people do read the offer documents before agreeing on any investment thing. Even after issuing many such notifications there are many people who blindly believe such companies and invest their hard earned money in the company. There are some who are lucky enough to get good returns from those investments but there are majority of them loose their money. They even cant file case as they had not read the offer documents.
There have been instances when certain investment schemes get termed as fraud or scam. Not because they have cheated their customers but just coz of people who doesnt read the documents but believe in other people. The best example could be of Pancard club investment scheme which was floated by panoramic group under Pancard clubs limited. The investment scheme stated that apart from other benefits company will make sure that they get some accommodation rights in hotels managed by Panoramic Universal Ltd. (PUL). The issue which made the people terms this investment as fraud and scam was when they imagined that Pancard clubs limited has no right to claim that they will provide accommodations provided by Panoramic Universal Limited. They failed to see that PUL and PCL comes under panoramic group of companies.
They failed to read the document and it happened to term the company as a cheat. It took some time to make people realize their mistake, but it had its affect on the scheme.