No investment scheme can give 120% returns a year, say experts

The operators of Ponzi schemes who promise annual returns anywhere in the range of 120% to 400% say they invest people’s money in real estate and futures & options (F&O) that yield such high returns. But market experts — realtors and stock brokers — say such high returns in a year is practically impossible.

Realtors and stock brokers in the city said that no investment avenue could give returns of 120% or more per annum. “I am into the business of real estate for past 30 years. I have never thought of getting even 100% returns in a year, leave alone getting returns above that in this period,’’ said city-based developer Vijay Shah.
According to him, any scheme offering such high returns has to be a scam or fraud. Real estate never gives such high returns.

“It is impossible that any company investing in real estate would give returns in the range of  120%-400% per annum,” he said. Stock brokers say stock market and particularly F&O can never give such high returns. “If F&O is the reason behind such huge profits, every stock broker today would have been billionaire,” said MD & CEO of Dhanvarsha Fincap Pvt Ltd, Nilesh Kotak.

The stock analyst said he was aware of such Ponzi scheme but did not know how it operated.  “I have been hearing about the schemes being operated from Juhapura, but I was never aware of how they operate. For sure it’s a scam and like Ashok Jadeja’s scheme this one will collapse one fine day,’’ he said.

Head of derivatives of a Mumbai-based stock broking firm said, said that if F&O is giving 120% returns a year he would have left his job long back and become a billionaire. “It is a fraud or scam,” he said.