Can market-linked returns be guaranteed?
Sutra & Signal Research · Published · Last reviewed · 4 min read
The short answer
No. Returns from market-linked investments such as equities, commodities and digital assets depend on prices that no one controls. A promise of fixed or 'assured' returns from such investments is a red flag, and SEBI has repeatedly warned investors against schemes that make such promises.
Why guarantees are impossible
A guarantee requires someone to absorb losses when markets fall. In a genuine market investment, that someone is you. Products that do offer fixed payouts, such as bank deposits or government savings schemes, carry different risks and are regulated differently.
Red flags
- 'Assured 2% a month' or any fixed monthly profit from trading
- Screenshots of gains shown without dates, cash flows or losses
- Pressure to transfer money quickly or into personal accounts
- No verifiable SEBI registration number
What a responsible manager says instead
Expect a description of the process, the risks, the worst historical falls and how fees work. Expect to be told that outcomes vary. That candour is a feature, not a weakness.
We will never promise a fixed return. If anyone claiming to represent us does, please write to hello@sutraandsignal.in.