TFG Crowd investment plans - secured by 1 GBP?

TFG Crowd just launched “investment plans“ - with idea that you can send money to TFG Crowd, and they will invest it in a diversified portfolio. And investors don’t have to do any due dilligence. Sounds good, right?

How does it work?

Guaranteed fixed annual interest. You earn interest specified in the selected investment plan regardless of fluctuations in the underlying investment returns.  

Diversified and optimized investment portfolio without any effort from your side. You no longer need to spend time on market research and due diligence to shape your investment portfolio: the investment objects included in each plan are already hand-picked for you to ensure the best balance between the risks and interest paid.

Low minimum entry point amount. To get started with an annual program, you only need €100. However, to maximize your returns, it is probably wiser to start with at least €500 and select a 2-year Investment Growth plan that allows earning 24% per year compared to just 14%, if you chose the Beginners Investing plan.

Regular interest rate payments. The interest is accrued and paid monthly or weekly depending on the selected plan. Thus, you can see how your wealth is growing month after month.

Choice of maturity length. You can select the investment term (1, 2, or 3 years) that fits your goals best.

Invest in multiple assets via a single platform. You make a single investment and keep track of your earnings in TFGcrowd account, while the deposited from your side. 

IBAN Wallet on steorids?

I’ve written a lot about IBAN Wallet scam, and TFG offer looks exactly the same, but with 7x higher interest rates. IBAN wallet “investment plans” offered return from 2.5% to 4%, and TFG Crowd offers returns from 14% to 26%”:

Both provide zero transparency and investors have no idea, if money is invested at all.

Guaranteed by 1 GBP?

What are the guarantees behind the Investment Plans?

TFG Crowd Limited has issued a corporate guarantee to guarantee the investments made into Investment Plans. The corporate guarantee states that TFG Crowd Limited guarantees the repayment of all loans issued with all the movable and immovable property it owns, which will be secured by their shares. During the term that any received loans are active, TFG Crowd Limited is not allowed to pay out any dividends to any of its shareholders, decrease the value, encumber or dispose of any of its assets or property, take out any loans that would be superior in nature, issue any guarantees (other than this guarantee) or pledge their shares to anyone.

There are no financial reports available, but the share capital of TFG Crowd Limited is a joke:

Investors are encouraged to invest in a black hole, and if something goes wrong, they will have a claim against a 1 GBP company? Good luck.

More posts about TFG Crowd

Key Takeways

  1. TFG Crowd investment plans look very similar to IBAN Wallet scheme

  2. 14-26% guaranteed return is completely unrealistic

  3. If you have no idea where your money is invested, you probably deserve to lose it

P.S. Join “High-risk investments“ Telegram group for an informal discussion.