102) Investor Challenge # 10 - Guaranteed Return From Investment
This is another major requirement from investors. Everybody wants an assurance that their money SURE to give a good return. Nobody wants to risk their hard earned money.
The "Guarantee" requirement in financial products is impossible to fulfill. Nobody can be certain about the future, let alone control the future investment returns. For a product to be guaranteed, there must be a guarantor.
The next question you should ask is,
Who guarantees the guarantor?
Have you ever seen and study all the write ups and brochures about investments? Have you seen any claims of GUARANTEED RETURNS in any of them?
Even the banks do not publish the word GUARANTEE in their Savings and Fixed Deposits returns. The banks will publish a certain Return Rate, but the word "Guarantee" cannot be found. In Malaysia, we have the Perbadanan Insurans Deposit Malaysia (PIDM). This organization will protect your savings up to a certain amount for each account.
(Note: If you found any GUARANTEED RETURNS statement in any investment or bank products, please forward to me. I would love to see one.)
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