Guaranteed returns
Also called: assured returns, fixed returns
A promise of a fixed or certain profit from investing in shares, which no genuine intermediary can make and which is a classic sign of fraud.
Share prices go up and down, so returns from the stock market cannot be guaranteed. Promises such as "assured 4% a month" or "double your money in six months" are typical of fraudulent schemes, including Ponzi schemes that pay early investors with later investors' money.
Some genuine products, such as bank fixed deposits, do pay a fixed rate. Those are not investments in shares, and they carry their own terms and limits.
Example
A promise of 5% a month compounds to about 80% a year, far beyond what any regulated investment offers. The size of the promise is itself the warning.
Learn more in these lessons
- How to spot a stock market scamHow can you tell if a stock market offer is a scam?
- Fake testimonials, screenshots and misleading advertisementsCan you trust testimonials and profit screenshots in investment ads?
Related terms
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