Author: Dawie De Villiers
Date Publiched: 10 December 2012
Cape Town – With the global economic slowdown and interest rates at around 5% to 6% investment returns are looking bleak.
With many South Africans, particularly retired persons struggling financially, fraudulent investment schemes, or “Ponzi” schemes have become more widespread, says Dawie de Villiers of Sanlam.
Investors often buy into such schemes without full understanding how such schemes and their operators achieve the promised returns.
These schemes often assure investors of a return far greater to that of the financial market, at low risk.
In the past few years, Sharemax, Fidentia, Leaderguard and those of Herman Pretorius are some of the schemes many unsuspecting investors have been caught out by.
There are however ways for investors to prevent falling ….