Don't lower guard: Not just returns, focus also on a scheme's risks

Enquire how the high returns being promised will be generated, and whether you are comfortable taking the accompanying risk

Two cases are currently in the news in which a large number of investors may lose their hard-earned money. One is that of a Mumbai-based stockbroker called Anugrah Stock & Broker, which allegedly promised its clients an assured monthly return by trading in futures and options (F&O), but was unable to do so as it suffered losses in the market. The second case is that of a Kerala-based entity that collected money from depositors, again by promising a high return of 18 per cent. With a large number of customers demanding their money back during the Covid crisis, the scheme