Learning from mis-buying : Rs.24 lac lost on "Double your money" claim! Is this investor's greed, ignorance or both?

IMP-OST : 20120827 ( Post 3 of 7 )         

Source : Divya Bhaskar newspaper

As this article is in Gujarati, following short translation is included for those who do not understand Gujarati.

In Vadodara city before 3 years ago one lady had given Rs.24 lac to one person for doubling money in short time as the person told her as he is doing investment work in stock market, in short time she will get double money.

Subsequently the person had given 4 deposits ( Abhinav gold - 2 deposits of 3 lac each, Red carpet - 2 deposits of Rs.51,500 each ).

The person had invested her money in Abhinav gold, and Red carpet company - Rs. 7 lac, what about other fund?  Is this stock market investment?  When the lady asked for documents of remaining investments, the person told the company is closed,  given other excuses.

The lady had recently lodged police complain against the person.

The worst part was in addition to existing fund, she had taken loan against jewellery, personal loan, loan from society ( where her husband was serving as a teacher ) for investment!

Is this the result of investor's greed, ignorance, or both?

Definitely honest un-biased guidance can make difference in your life.

You can also go through our following relevant posts :

1. 6 lac to be invested - different approaches : By An agent (product seller) & by  financial planner ( who charge fee for advice/planning )
2. Investor or Regulator - Who should ask mutual fund houses on the under performance? No it is mutual fund distributor who should advice investor to stay invested or exit as earn commission.

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