Investing · General financial education

Guaranteed return myth

A 'guaranteed high return with no risk' contradicts the basic link between chance and risk. Whoever promises that often sells an illusion or a scam.

In more detail

Some products have limited guarantee features under conditions (and often costs). That is not the same as 'safely rich'. Marketing words do not replace a prospectus or risk disclosure. Finmon bashes no brands and recommends nothing.

Background

Ask about the conditions, the costs, and what happens if markets fall. There is no signal to buy. This sits next to risk, past performance, common scam patterns, and fake investment pitches.

An example

An offer advertises '10% guaranteed, zero risk'. Without clear conditions and risk disclosure that is a myth signal, not a quality mark.

A common misconception

High returns can be guaranteed with no risk.

Chance and risk are linked. 'Guaranteed high and risk-free' is a myth or a warning signal.

Source: BaFin · Einmaleins der Geldanlage. Last reviewed: 2026-11-09. Editorially reviewed on 2026-11-09. Next review 2027-11-09. Version 0.2.0. Finmon explains. It does not advise. Not investment, tax or legal advice.