Is it possible for an investment to offer a profit of 3% per week?

  • 📰 Moneyweb
  • ⏱ Reading Time:
  • 45 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 21%
  • Publisher: 77%

South Africa News News

South Africa South Africa Latest News,South Africa South Africa Headlines

[READER QUESTION] 'My friends & family are investing in Novatech which uses PAMM account software. They are promising, ‘although not guaranteeing’, a profit of 3%/week = 12%/month. Is that truly possible?' Marius Fenwick from Wealthup responds Moneyweb

My question could possibly sound very stupid. A lot of my friends and family are investing in Novatech which uses PAMM account software. My main concern is that they are promising, ‘although not guaranteeing’, a profit of 3% a week which then leads to 12% a month. Is that truly possible? Experts say a 2-5% maximum is possible.

Commercial banks are allowed to add some margin to the repo rate which determines commercial banks’ prime lending rate, currently at 9.75%. Considering the current upward trend of interest rates, we see different banks offering interest rates that vary from around 4.5% per year on call accounts to around 12% per year on fixed deposits.

Remember African Bank? They offered the best interest rates on deposits of all banks. Why did they fail? Because they lent their investors’ money to individuals within the micro-lending space and charged them enormous interest rates and they kept on churning those loans to the same individuals until they could no longer afford to repay their loans.If the risk-free rate is 6.

The Cajee brothers also scammed South African investors with another crypto platform scam where they disappeared with $3.6 billion worth of Bitcoins.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

thisiswealthup That's too small 🤔

thisiswealthup For you to make it someone must loose it! Or do they print money?

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 5. in ZA

South Africa South Africa Latest News, South Africa South Africa Headlines