20% Return Above Cash Rate Guaranteed: Would you invest?

Submitted by Jericho Hodgson on 4 March, 2010 - 10:55

Australian Cash
What will be your initial reaction if you come across a trading headline that reads 20% return above Australian interest rate guaranteed: Would you invest?

What will be your initial reaction if you come across a trading headline that reads 20% return above cash rate guaranteed: Would you invest? Of course, you might want to know the company which is behind the offer even before venturing to invest on the offer made. To make an investment that promises returns in the 20% above the Australian interest rate - guaranteed, the quintessential feature an investor should be looking for is the creditworthiness of the establishment floating the offer, as in the case of WBC which reeks of rich credentials, coming with such an offer. But of course, you must approach any investment which offers a spectacular return with caution and suspicion.

Will you as an investor take an instinctive decision after seeing this tempting offer, 20% above cash guaranteed: Would you invest? You certainly would delve deeper to know as to what sort of investment is in the offing for a firm to say 20% above cash guaranteed. Supposing the offer is to come from someone who assures 20% on your investment, and they aim to make 60% from your investment, then it is a crystal-clear deduction to know that your money will be treated to extreme risks, and it isn’t all that worthy to invest in such an offer claiming 20% above cash guaranteed: Would you invest?

20% Return Above Cash Rate Guaranteed: Hypothetical

Take the case of hedge funds, where to claim 20% return above cash rate guaranteed is utterly ridiculous as only a few hedge funds have provided such returns, and most importantly the high risks involved might even pave way for your capital to go down the drains. Then what if someone calls with 20% above cash guaranteed: Would you invest? This also sounds hypothetical to even call it a guarantee as to assure you with a slogan calling with 20% above cash guaranteed, as chances are that it isn’t going to be WBC or CBA to come up with such an offer to assure with such returns. As an investor, you would also be looking into the assets belonging to the issuer’s property when they promote such a fantastical offer.

You would make it a point to dig into the issuer’s past regarding such offers, how airtight would the contract be, and what sort of fees are they going to charge you as while the offer is made, and other such relevant details about the issuer if he is going to come out with such a proposition as this. Needless to say, your immediate reaction to the offer 20% above cash guaranteed would be to know as to how much would you be putting in, and also how much are you expected to invest, and to check whether the offer is legitimate.

20% Return Above Cash Rate Guaranteed: A Possibility?

It might be a distant possibility for a profitable trader who has enjoyed trustworthiness with their customers to be loaded with extra cash for them to come up with the offer claiming 20% above cash guaranteed: Would you invest? It could be a possibility that he opts to raise this as the security, for instance, 40% of the raised funds, as to allot 20% for covering the returns and as drawdown another 20% gets allocated to drop dead level for that of the fund.

But there are investors who would be willing to invest their amount within their trade and of course with the risk management when they come across such claims as 20 % return guaranteed. Also, as per the Australians anti entrepreneur laws, such claims to say 20% above cash guaranteed is only going to be hypothetical. But as in the case of syndicates and the Investment clubs, would you react be tempted with a great return? It seems more probable as it could pave way for returns even more than 20%, which just gets set up with that of a Solicitors agreement.

All in all, you might just want to make sure of the issuer and the other factors that influence your investment when you come across an offer as alluring as “Hey buddy, we’re offering a great return on investment here way above the above the interest rate. Guaranteed.” Would you invest?

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