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Market Intelligence › Basic Terminologies
Why guarantee is not possible in market linked product, and other red flags
Published by The Retail Trader · AUG 06, 2026 · Compliance & Regulation
No market related product can guarantee fixed return. This is both a matter of rule and also of profit – where the return is volatile, selling the vehicle with certainty may only be possible.
Often he does not say "guarantee" directly. They use words like "assured", "fixed monthly payout", "risk free" or "capital protected with high returns", which have no legal weight.
Sometimes payout comes in the beginning – it is from the money of new people, not from any return.
If you see one of these, stop:
• Promise of fixed percentage monthly return, no matter what the market does.
• Withdraw money from a person's personal account or a third party wallet.
• Hurry up, the offer is still under pressure.
• Extra commission on bringing new logs – This is not a product, it is a chain.
A simple filter always runs: if they are asking you to send money without registration, without agreement, without risk disclosure, whatever the name of the product, the decision should be made there.
This article is for educational purposes only. It is not a buy or sell recommendation, a claim of guaranteed returns, or advisory guidance. Exchanges, SEBI and RBI change rules, rates and procedures from time to time, so verify every figure with your broker or an official source.