Things To Check Before Investing Online- Investment Due Diligence

Are you planning to invest your funds online, here is a checklist that will help you ascertain the legitimacy and sustainability of any investment platform?

Investing online has become part of us since it’s a means of earning residual income, but what are the things you should look out for in an online investment platform before investing your funds? the question “is it paying?” is what most people take as a criterion for investing online, but that question is not good enough since most of the schemes that answered yes to that question are nowhere to be found, read on to find out the proper due diligence you should perform before investing online, this helps you ascertain the sustainability, legitimacy of the platform.

In 2016 Online investment schemes became viral in Nigeria, South Africa, Ghana, and Africa at large, these schemes answered yes to the question on almost everyone’s lips “IS IT PAYING“, but few months after the schemes became viral they faced bankruptcy leaving the investors in a loss, Why did this schemes fell? they temporally answered YES to only one question IS IT PAYING?, and NO to tens of other investment-wise questions that a sustainable investment platform should have a convincing answer to and also have something to show for it, on this post we will checklist them.

Checklist Before Investing Online

Here is our list of things you as an investor should check before investing online in 2019, this comprises of questions an investment platform should have a convincing answer to and equally show it off through her activities. they are as follows:

How Is It Paying? (Source of Income):

The First thing you should figure out before investing your funds in an online scheme is the source of income, this is a crucial question and need to have a clear and understandable answer, how is the scheme raising revenue to pay the investors, if their primary source of income is from new investors then its risky to invest in as it has elements of Ponzi and without new investors, the older investors funds wouldn’t be paid, but if they earn through the sale of real goods, product and services, having something to show for it(not just claims) them its a good venture to invest in.

Where Do They operate?

This is one of the vital questions to ask whenever a scheme is introduced to you, we all know that most of the investment schemes operate online, on the world wide web to be precise, while some of them make use of social media channels like Whatsapp groups, Telegram groups, note that 99% of investment schemes that run on Telegram via Telegram groups are scam while performing your due diligence its good that you verify the physical office of the scheme you want to venture into.

What Are Your Funds Used For?

This question should be explained clearly by any online investment, this explanation should be clearly made on their home or how it works page, and should go inline with their operation and activities afterward if your funds are never invested with, that is to say, that it’s more like a donation platform you should retrace your steps as past experiences have proven them to be a scam. , moreover, any business that has no steady source of income is bound to face bankruptcy any time soon.

ROI Rate:

Return on Investment Rate is the amount an investor is paid at the end of the contract, mostly on monthly basis, if the ROI is too good to be true considering the nature of the investment, for example, an online scheme paying 50% ROI for two weeks or 30days contracts sound too good to be true and can’t stand the test of time either.

Minimum Contract Period:

The contract period of investment has a lot to say about the legitimacy of the platform, if it claims to pay within a few days of investment or weeks you should trade cautiously because real businesses earn revenue after a minimum of 25 to 30days of investment, and RIO are usually below 5% another thing to look out for is the payment manner, do they pay both the capital and the RIO at a go, this feature has something to say about the safety of your funds and investment.

The Payment Method:

Payment method is the key to identifying a Ponzi scheme, most of these schemes adopt the peer to peer payment method, in which the investors pay each other, no central account for funds deposit, over time this schemes never stand the test of time, a good and sustainable investment should own a central account, where investors funds are collected for investment purposes anything other than that is a Ponzi or Pyramid scheme and shouldn’t be trusted if even it seems to pay.

Origin and legal Backing:

The Founders of a platform equally have a lot to say about how legitimate and sustainable the platform is, a certification and recommendation by a legally recognized agency is a positive sign, it’s advised that you narrow your due diligence to this extent.

Rounding things up, investing online is a risk, anything can still happen if even the investment platform has a positive checkmark to these criteria, you are advised to invest with monies you can afford to lose, that is your spare money to be precise, don’t ever borrow or get loans to invest online.

Hope you found this article helpful, feel free to share your personal online investment checklist via the comment section below, we love to learn from them

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Best Regards.