Portfolio Management Services involve a registered entity taking charge of your investment. However, there are no guaranteed returns or promises in such services.
People with no knowledge or awareness often get trapped in such schemes and lose their entire capital.
Recently, Rajeev (name changed) shared with us one such case. Although he didn’t fall into the scam, his experience can help you stay alert and avoid such scams.
Rajeev: Hello ADB Team? Rahul, I’m busy today. Can you attend a stock market course meeting on my behalf? It’s being held by a friend who is a government teacher.
ADB: Yes, please tell how can I help you?
Rajeev: So, I recently came across one PMS service providers who are actually doing scam with people.
ADB: Okay, that sounds serious. Please provide more information.
Rajeev: So, one day my relative called me and asked me to attend one stock market course meeting on his behalf. That meeting was arranged by one his friend who is a government teacher.
ADB: So, what was conveyed in the meeting?
Rajeev: The meeting room was full of government employees and there were two people who were talking about investment opportunities.
Initially, I found it interesting but later they told that they offer Portfolio Management Services.
ADB: Okay, so were they registered?
Rajeev: No, I couldn’t find any such details of registration.
ADB: So, what did they ask for?
Rajeev: They said that we can start their PMS with the minimum amount of ₹50,000.
ADB: Were they promising any kind of returns?
Rajeev: Yes, they guaranteed 24% returns in the period of 60 days. This is all documented in a ₹1000 stamp paper.
To convince us, they also showed ₹1000 crores rupees portfolio that they are currently managing. However there was no broker name.
ADB: So, you didn’t ask the broker’s name?
Rajeev: I did, but they said that they didn’t disclose broker’s name.
I also asked about taxes on the return. On which he was not able to answer and then replied that they didn’t handle taxes.
ADB: So, did you make the investment?
Rajeev: I asked about the process where they said that we need to transfer the money to their bank account and they will share Excel sheet every month with every detail of returns.
ADB: This sounds bit off.
Rajeev: They tried to lure me with high returns but thankfully I was not convinced.
ADB: That’s good that you were cautious. But yes, many people could fall in such schemes.
Rajeev: Yes, that’s why I thought of informing you so that you can share this with other people.
ADB: Thanks for the detail!
So, yes there are victims of such scams and then there are people like Rajeev, who stay alert and follow their instincts to prevent themselves from falling into such schemes.
