As retail investors we have many investment options today, common ones such as stocks, MFs, rental income, etc., and newer ones such as P2P lending, angel investing, digital gold, etc.
However, not all products and companies selling those products are regulated i.e. do not have oversight of regulators such as the RBI and SEBI.nbsp; While not all unregulated investment products are unsafe, they are more prone to fraud and losses.
Before you make an investment, check if the product and/or entity providing the product is regulated.
Examples of Unregulated Investment Types: Digital Gold, Deposit Schemes, Some types of Chit Funds, Crypto etc.
Examples of Regulated Investment Types: Mutual Funds, Stocks, P2P Lending, Real Estate Investment Trusts, Bonds etc.
Regulators often explicitly ban financial advisors and registered brokers from recommending/selling unregulated assets until they come up with qualification criteria and rules for such investment assets and the companies that offer them.nbsp; These regulatory safeguards are for investor protection.