Can any legal investing company pay 9% interest per month?

Question

Can any legal investing company pay 9% interest per month?

Answer 1

Yes. You take say £10000, invest at 6% then take out the other 3% from the capital. Coventry BS PIB pays nearly 10% and it is irredeemable. If you are talking about 9% plus guaranteed capital back (inc/ex inflation) then be very careful.

Answer 2

9% a month.... That's 108% a year.   Your average mutual fund considers 12% a year very good.  If this return was "real" they could certainly get full time investors to be quickly involved.... instead they're coming to you!!!!!!

In short.... this is a screaming scam or  very highly dangerous investment.... either way..... stay away.

Answer 3

A simple yet disciplined approach requires us to always ask the proverbial question:  "Is it too good to be true?"

9% monthly is too good to be true.  Seems to me that you may be looking at another HYIP.  

There is no way any lasting company can give a sustained and durable return of 9% monthly.  

It may last a little while, but eventually, markets and investments cannot sustain such returns.  there are always peaks and dips in any market and in any investment.  9%  simply can't be maintained  for a long period.

If it is a HYIP, they are simply paying out the first investors with money from the new investors, until there just aren't enough new investors and they then close down.

Check the source and where the company is located, and find references and try to speak to their current investors to see how long they have been pulling this type of return.

I can pretty well guarantee this is not something that will still be there in a year from now.

Answer 4

The above answer involving Coventry BS is relatively accurate. what I would note is that a company that can offer a return of 9% will probably be taking risks beyond which most investors are willing to take.

Is the product offered stating its average return?

I am assuming that the figure you are given is not a guarenteed returned. Just check whether the product has filed accounts and how long it has been in existance. If its recent look at the history of the management team: where have they worked, for how long etc.

I have seen traders with unlisted private products achieve 9% per month with micro funds (less than 100M under management) but these people are rare to come across and often  have strange personal agreements and very high managements fees (in excess of 50%)

Just remember no matter what, with any investment product the bigger the potential return the higher the gain. Usually you have to forget hedging your porfolio as a manager to achieve higher returns and long/short only means that ur taking a lot of risk due to rebounds/ reversals.  

Finally is the product opened or closed? can you withdraw your money at any point?

What you have to consider is that although your company does not operate within the rules of your national regulator (SEC, FSA etc) it does not make it illegal.

You could be simply buying shares in a private holding company onshore or offshore. These companies will only have to file annual accounts and could have a brokerage account in the company name allowing them to invest company funds and the returns being payed back as post capital gains dividends to the share holders.

As suggested with all financial products, consult your own independent financial advisor before making your descision.

Answer 5

sounds very suspicious. be careful.