crypto currency day Business Financial planners and mutual fund advisors say that many mutual funds have caught the attention of investors, especially the youth. According to these advisors and planners, if heavy bets are placed on these ‘so-called’, many investors are likely to lose their hard earned money. Investment Choices they believe can make people rich overnight.

“It is a scary scenario. Many investors, both young and experienced investors, are betting heavily on cryptocurrencies,” says Suresh Sadagopan, chief planner at Ladder 7 Financial Advisors. “Unlike other investment options such as mutual fundsCrypto currency has no underlying assets. If things go wrong, your money is gone,” he says.

Mentors Say Most Of Them Don’t Encourage Investment In crypto currencies because there is no clarity on its rules. “Most investors are investing on their own because they feel they can earn high returns. It is a risky investment. Many investors will realize it in time,” says an advisor who does not wish to be quoted.

Most advisors on ETMutualFunds.com said they are apprehensive about these investments as there is no clarity on who will help investors if there is a problem. “It is not clear who will be in charge in case the investor has a problem,” says Sadagopan. He says that he has no problem with cryptocurrency. “It is a great concept. But a currency cannot be just for speculation.”

Advisors also say that many investors believe that they can easily make a lot of money by trading. “There are many investors who want very high returns in a day. They believe day trading can do that for them,” says the mutual fund advisor. He says that many investors go overboard once they see high returns in one or two trades, and it can be very risky, “If you set a percentage for this kind of speculative activity, It is still fine. Otherwise, investors will lose all their money,” says Sadagopan.

Mutual fund advisors and planners say that investors, especially those investing with a scheme, should not indulge in such speculations to build wealth.

He argues that new investors won’t listen until they lose their shirt, but seasoned investors shouldn’t fall for these tall claims of super returns in a day. “You can see such examples in your mutual fund investment journey as well. Stick to your financial plan,” say mutual fund investors. “The only proven way to build wealth is to invest regularly over the long term.”