Let’s continue to discuss this kind of plan that looks like an investment but the risk is too high, even so high that it seems to be a scam. As far as my personal experience is concerned, they have a lot in common. The first is that many of them have so-called guaranteed returns, and the guaranteed returns are ridiculously high. The fund return rate that general insurance companies can provide is at most 8% per year, and the expected return rate for stock investments is only about 15% at most, but these investment projects actually tell you that they guarantee an annual return of 20%. I know that this kind of guarantee is empty talk, but many people always fall victim to it. As this year's fraud tycoon Aoli Capital's Zi Luo said: "Remember not to be greedy for high interest rates in the future. If you suffer big losses due to high interest rates, there will be no pie in the sky."

Secondly, the vehicle for receiving funds is not a reputable institution or licensed company, and there is nothing that can record the relevant investment except the ambiguous contract that has been signed. The investment project does not have an entity, or your control over the so-called "entity" is very limited. For example, you may only own 1% of the management rights of a certain horse. So do you own the hoof or the nose of that horse? As a result, the redemption method was unclear, and it was impossible to take away the physical property. After being dragged for two or three years, I could only let it go and lament that I had paid the tuition.

In fact, it would be a good thing if they could really achieve the promised returns, but the risk of this kind of investment is too high. The most common risk, as mentioned in the previous article, is that they have the opportunity to violate the relevant regulations of collective investment schemes. Once such a plan is reported, the Securities and Futures Commission or the Commercial Crime Bureau may intervene, and the entire investment project will be ruined. If the fundraiser had paid a lawyer to deal with it, it might be possible to write some contracts that could circumvent the relevant regulations, but many people are unwilling to spend the money, and many law firms dare not take such risks. They write. So to put it another way, if an investment plan is drafted with the help of a law firm, the credibility will be relatively high. At least if something happens, you can complain to the Lawyers Association and drag more people into trouble.

To sum up, if a purported investment plan meets most of the following conditions, even if it is not intentionally deceptive, it still carries a high risk of losing all your money. You must think twice before committing:

1. There is no support or responsibility from anyone holding an investment-related license or professional license
2. The investment entity or its related collateral cannot be taken away at will, and there is no reasonable resale method or value; unless the fundraiser has a reason to be absolutely trusted, the redemption clause is of little significance.
3. You have almost no day-to-day management rights over the investment entity and are not familiar with its operations or have only received information from the fundraiserℹ
4. The "guaranteed rate of return" is so high that you doubt he can afford it.
5. You basically don’t know other investors, making collective recovery difficult.

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