Is a Hedge fund truly safe?

Question

A Certified Financial Adviser has approached me about doing a Hedge fund. He says I would get 3% interest every month, much better than 3% a year.

You would get 36 % return over a year, if I understand right. It sounds too good to be true. He said it is a fixed interest rate and no risk to my money. I am new to investing and don't want to do the wrong thing.

Answer 1

You are being misled. What he's doing is against the law & morally corupt. He should be reported to the SEC.  This is a serious scam. He can (should) go to jail for this.

Go to a several national well known brokers and see their reactions.

Good brokers to check out;

Edward Jones

UBS

Merrill Lynch

or better yet (and easier)... call Charles Schwab & tell them what you've been offered..... ask them if they have something similar;

866-855-9102   7 days a week, 24hrs a day.

(Charles Schwab is one of the largest investing companies in the USA)

Answer 2

a 36% return is a high risk investment.  

Answer 3

Anyone that promises you that type of return is not to be trusted.  Don't give that peson 1 cent of your money.

Answer 4

Hedge funds are inherently not safe.  A 36% annual rate of return is not safe.

Answer 5

It is strictly illegal for an investment advisor to promise you a return.

Answer 6

A hedge fund is not 'safe' and no one reputable would tell you that.

A 36% return means the investment is not 'safe' and no one reputable would tell you that.

A fixed interest rate means that it isn't a hedge fund.

This CFA is lying to you.  Hopefully (for the profession) he may also be lying about being a CFA.