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Ponzi Scheme
A Ponzi scheme promises high, steady returns but pays them out of money from newer investors rather than real profits. It collapses when new money stops arriving, and most investors lose everything.
Why It Matters
If an investment guarantees high returns with no risk, it is almost certainly a fraud.
In India
Indian regulators regularly warn against chit-fund frauds, fake trading apps and crypto schemes promising doubled money.
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