Avoid scams and bad investments by doing some safety checks before you hand over your money. It can save you a lot of worry and money later on.
Check before you invest
- Check the company or product issuer is licensed. You can use ASIC Connect's Professional Registers to check whether a company or investment product issuer is licensed by ASIC. If they're not, don't invest.
- Watch out for get rich quick schemes and scams. Beware of unsolicited investment offers. Ask yourself: where did they get your details and why are they contacting you with an investment opportunity? If can't answer these questions, don't invest.
- How the investment works - if you don't understand how an investment makes money or the sales person can't explain it clearly, it's time for more research before you put invest.
- How much risk you're taking on. Be wary of investments that promise high returns. High returns means there's high risk of loosing money.
- Read the product disclosure statement (PDS). This tells you an investment's key features, returns, fees, and risks.
- Get professional advice if you're unsure. If you're unsure about an investment, seek financial advice.