Guaranteed 3x return on equity - is this a scam?

[bart75]

Recently I came across an equity deal for HATS on an alternative investments platform Sterlcent. (Deal link)

On offer is a guaranteed 3x equity growth + 9% p.a. dividend on the invested amount. The tenure is 60 months. Minimum investment required is INR 50K

I connected with the company's support on email, sharing some key points:

• How do I exit this investment? – Please note that HATS will be giving a buy-back offer post 60 months which will give you opportunity to take an exit from the investment. This buy-back offer will be made at 3x of the investment amount, which is guaranteed. If you do not accept the buy-back offer from HATS, then you may continue with the fresh Shareholding Agreement which will be executed at 61st months.
• If you continue after 60 months - If you don’t accept the buy-back offer at 61st month, a new Shareholding Subscription Agreement will be executed with the new deal terms that shall be decided at that point of time. SterlCent as your Investment Manager, shall be evaluating and suggesting the users whether to continue with their investment or take an exit. We have recommended this to all our users for a prominent reason i.e. the business performance needs to be evaluated and the growth potential needs to be analysed before taking a call.
• How do you guarantee 3x returns on equity? – The guarantee is provided based on the performance of HATS in past and their future growth projections. HATS have signed MoU for 25 years with Airport Authority of India, alongside acquisition of more aircrafts to expand their operations multi-fold. Multiple such factors backs the deal for a guaranteed 3x returns. The financial analysis is also a major contributing factor to their 3x guarantee. The governing document including the primary Shareholding Agreement between HATS and SterlCent shall include this clause and the same shall be present on your individual Subscription Agreement.

They also have done an AMA recently with the founders of both HATS & Sterlcent (link).

My point is, this sounds too good to be true. Is this a scam?

 

[manny2503]

@bart75 3x return + 9% interest p.a. Even Anuradha did not promise so much in Phir Hera Pheri.

 

[bacsb0]

@manny2503 Laxmi chit fund ftw

 

[johnnathanturner1989]

@manny2503 aa tu jaa yaha se ye scheme sirf amiron ke liye he!

 

[whalstib]

@bart75 Yes. It’s a scam.

Here’s a thumb rule: if such an investment opportunity exists it will move up the food chain and enter the portfolio of the wealthy. The fact that they are offering it to retail customers means that it is not on the up and up and is a scam.

 

[fphelps]

@bart75 Anuradha: "Humaari scheme limited logon ke liye hai."

 

[christdied4me]

@bart75 Whenever I see someone "guaranteeing" any returns, i consider it to be fake. Nobody can guarantee even 10% returns annually. Let alone 3x.

 

[unprofitableservant]

@bart75 Report this nonsense to SEBI

 

[smokey3]

@bart75 Read the last line of your post without the question.

 

[hartsongjoy]

@smokey3 It's still a question if the sentence starts with a helping verb.

 

[kalter]

@hartsongjoy This one grammars!

 

[mythriilesque]

@bart75 Ponzi scheme hain

 

[qutcut]

@bart75 Report this to SEBI, It's a ponzi scheme.

 

[cristinasi]

@bart75 "Guaranteed" + "Return" + "Equity" = SCAM

 

[niceguy01]

@cristinasi Guaranteed SCAM.

 

[xuyen]

@bart75 Please report this to SEBI immediately. It's a criminal offence to dupe gullible investors like this.

At times I have felt investors also deserve to be duped. If you are so despo for financial growth why not work, grow and earn it yourself? Anyway, enough of my rants.

This is a crime scene and needs reporting

 

[niceguy01]

@bart75

Guaranteed 3x return on equity

Guaranteed SCAM hai ji. Likh ke le lo.

 

[cornbreadfed614]

@bart75 Anybody that guarantees 3x return + 9% dividend in any market is lying to you. In all my years of investing, I'm yet to find an exception to this.

 

[gailsie]

@bart75 21 din me paisa triple!!

 

[peppapixl]

@bart75 index is struggling to give 12% , few mutual funds are having 14% for past 2 years . This could be a scam .
Rather invest in tata A+ bonds for 10% and other bonds for 11% to 12 % than equity ryt now . Most stocks have too high earnings already and only way to pick stocks is during quarterly results. Stock market isn't looking promising as of now overall . pharmaceuticals are performing better so I guess if they have more transparency on where they are investing then you could invest .