If they claim they make 10% a month, is there a way you can verify that they actually made a 10% return on invesmtnet instead of just going by their word?
They claim they get audited every year. Can an audit company check this?
Company based in Singapore
2007-03-28 06:13:33 · 1 answers · asked by Richard A 1 in Business & Finance ➔ Other - Business & Finance
If the auditor is doing their job correctly it should be easy for them to detect outright fraud.
Beyond that, I think you have the right and responsibility to ask questions. How did they generate those returns? How did you do this in bull and bear markets? What was your best idea of last month? Of last year? If it's a total fraud, the portfolio manager might acutally have a hard time answering these questions because he isn't really investing. If they won't answer the questions, walk away.
Last but not least I would say "buyer beware". 10% per month? If it sounds too good to be true, it probably is.
2007-03-28 08:04:03 · answer #1 · answered by gls_merch 5 · 0⤊ 0⤋