Director-General of the Securities and Exchange Commission, Rev. Daniel Ogbarmey Tetteh has advised persons who have the get-rich-quick mentality to beware of Ponzi schemes and investments which promise high returns with low risk.
“Anytime anybody tells you that this return is high, sure banker, low risk, it’s likely to be a scam. Just look for the exit and run as fast as you can.”
According to him, there is so much risk in chasing high returns without understanding the tradeoff between risks and returns when it comes to investing in financial assets.
“There’s this culture or practice of people always asking, what is the best investment? Which one gives me the highest returns? Anytime there’s high return, it also means that there is high risk. Anytime anybody proposes an investment solution and they say that the risk is low but the return is high, please look for the exit door and run as fast as you can.”
Speaking on JoyFM’s Super Morning Show, Mr Ogbarmey Tetteh advised people who are lovers of high returns not to lose sight of the fact that it could go with some high risk.
“And when things don’t go well, then they start looking for an avenue to resolve their issues or someone to blame. It’s important that you understand that there’s a tradeoff between risk and return.”
Enlightening fervent listeners of the show on how to be financially independent, Mr Ogbarmey Tetteh said people should assess their risk tolerance levels before making any investment.
“Unfortunately, what many people do is a mistake. They just ask, what is the highest return I can get? And then they go without understanding that there is that a tradeoff. Risk must be compensated for. If you’re not taking a lot of risks, then you don’t really have to be compensated. Anytime there is high compensation, there’s high return, they may not be explicit about it but there is a lot of risks,” he stressed.
Latest Stories
- Turkish election victory for Erdogan leaves nation divided
1 min - Lawrence Agyekum & Forson Amankwah win Austrian league title with Red Bull Salzburg
4 mins - World Bank releases additional $150m for Odaw Basin flood control
7 mins - Amedzorfe chief Okusie Akyem Foli V laid to rest
13 mins - GPL: ‘We are out’ – Paa Kwesi Fabin says Aduana cannot win title
19 mins - Virtual InfoSec builds Bank of Ghana’s state-of-the-art cybersecurity centre
22 mins - Yhaw Hero back with new song ‘Cold War’
25 mins - Today’s front pages: Monday, May 29, 2023
41 mins - Reality zone with Vicky Wireko: ECG’s revenue mobilisation drive: simply the best
44 mins - DreamChild Foundation poised for exciting HoodTalk Music Festival
47 mins - Legon Cities defeat drags Hearts of Oak into relegation dogfight
51 mins - Independent Power Producers reject government bid to restructure $1.58bn debt
1 hour - T-bills auction: Government fails to meet target again; interest rates still surging
2 hours - Government is resolute to ensure all-inclusive access to education – Bawumia
3 hours - New parliament: PM Modi inaugurates building amid opposition boycott
3 hours