Investment in Travel based company?

Question

I came across a company called Transcity. Its a Pune/Bangalore based travel company and they have an investment option. They say, if one invests say 2 lacs for a tenure of 36 months, they would pay 10k per month and additional 1 lac. so, ideally one would get to take 4.6 lacs for an investment of 2 lacs. The cheques would be given out for the monthly payment immediately on the day the agreement is signed and they would all be post dated cheques on a monthly basis. Has any one ever come across this type of investment. Is this trustworthy? Are these guys reliable? Would this be a safe option to invest in? Need your valuable suggestions please.

Answer 1

Be very careful on your investment decisions.  These days it is very hard to earn good returns with time tested instruments like the FDs and Bonds.

So many such companies are offering lucrative investment offers.  So be very careful before investing.

Answer 2

Many such overnight companies stoop to attract investors with a high rate of returns and your company referred in not an exception.

Request them to issue a Bank Guarantee from a Nationalised Bank and have the said Guarantee confirmed through your Bankers directly.

Many an investor have suffered high losses and do not invest in such schemes where you do not know the entrepreneurs, their financial backgrounds, their Bankers reference and such other minute details.

It better to be safe and secured than lured into assurances of higher returns.

Answer 3

As "anmal" suggests, ask for a Bank Guarantee for your Principal Amount, renewable annually,which they should be willing/ able to provide,hence if they default atleast your principal investment amount is protected. Did you inquiry,How long they are in business and how they are able to assure such returns of approx. 75% per annum, so forth to authenticate their capabilities/assurances ?

Answer 4

dont do it