CHAPTER 1

THE PROBLEM AND REVIEW OF RELATED LITERATURE

Introduction

Different types of investment schemes are gaining

popularity among Filipinos nowadays as exhibited in the
rapid build-up of their assets and increasing number of
investors. According to the Kingdom of Saudi Arabia Capital
Market Authority, investment is defined as the commitment
of current financial resources in order to achieve higher
gains in the future. Investments are arrangements whereby
funds are solicited from investing public and pooled
together for the purpose of investing, or trading
securities or other assets as allowed under existing laws.
Investing can help you to both create and preserve your
wealth. By taking an appropriate level of risk you may have
the opportunity to earn potentially higher long-term
returns. It is important to remember that the value of
investments, and the income from them, may fall or rise and
investors may get back less than they invested (Investment
Fundamentals: An Introduction to the basic concepts of
investing,” 2015).

According to Securities and Exchange Commission (SEC),

one investment scheme that has affected many Filipinos due
to its promise of hefty monthly returns on their invested
funds through donations is the KAPA Community Ministry
International, Inc. KAPA is a religious corporation
organized under the Philippine laws and registered with

1
Securities and Exchange Commission under SEC registration
No. CN 201707724 on March 03, 2017 with office address
located at Garay Arcade, Barreda Street, Caramcam District,
Bislig City, Surigao del Sur and is represented by its
Minister/Pastor Joel A. Apolinario. To be a member of Kapa,
the investors should fill out a contract form signifying
certain agreements. Included in the agreements is to donate
at least P10,000 up to at most P2 million. According to the
Civil Code of the Philippines, a donation is a voluntary
transfer of possession without any consideration and is
considered a gift. However, Kapa’s aim is to give back
wealth to the community by returning their donations on a
30% monthly basis referred to as Love Gifts in which
therefore, violates the definition of donation. Instead,
its investment scheme is within the definition of
“securities” under Section 3.1 of the Securities Regulation
Code which are “shares, participation or interest in a
corporation or in a commercial enterprise or profit-making
venture and evidenced by a certificate, contract,
instrument, whether written or electronic in character.
Another agreement is that member must believe that Pastor
Jose A. Apolinario is the “MODERN MOSES” of the new
generation. Thus, the religion and morality of the person
signing the agreement is affected upon the acceptance of
the said belief. Further, the donated amount shall be used
for the ministry to achieve its mission and vision for the
propagation of religious faith, establishment of livelihood
programs for the benefit of its members. The donee does
accept this donation and does express his gratitude for the
kindness and liberality of the donor. More blessings will
be given to the donor as love gifts based on the amount
donated.

2
 The Certificate of Incorporation granted to KAPA
expressly states that it is not authorized to undertake
business requiring secondary license from the SEC such as
soliciting investments in the form of securities. Also, its
investment-taking activity constituted a Ponzi scheme, an
investment program that offers impossibly high returns and
pays investors out of the capital contributed by later
investors. Because of this, the SEC issued advisories
against KAPA as early as March 2017, subsequently a cease
and desist order in February 2019 and ultimately an order
of revocation of its certificate of incorporation in April
2019. This affected millions of people whom have invested
more than what they can afford to lose. One group of people
affected by this fictitious investment are the grade school
teachers from one of the biggest public schools in Butuan
City.
This study is primarily focused on the effects of KAPA
Ministry, Inc. in terms of the livelihood, income,
emotional and other aspects of elementary teachers who
engaged in the investment scheme of the organization.

Review of Related Literature

This part of the paper presents the related literature

and studies both from local and foreign studies. Those
that were included in this part helps in familiarizing
information that are relevant and similar to the present
study.

3
Investment

In the present scenario, everybody needs investment,

even if one does not participate directly in selection of
any particular investment regime, participation still
occurs through pension plans, saving schemes of banks and
post offices and life insurance policies. With the advent
of globalization and diversification of financial markets,
investment opportunities for the retail investors have
increased. Investment is defined as a commitment of funds
made in the expectations of some favorable rate of return.
If the investment exercise is properly undertaken, the
return will be corresponding with the risk the investor
assumes. (Fischer 2008 : 2) Investing is a serious subject
that can have a major impact on investors’ future well-
being. Thus, it is important for the investors to have
knowledge about what and how investments work as well as
the risk of investing. Knowledge is defined as the
information, understanding, or skill that you get from
experience or education (Merriam Dictionary,n.d). Reading
books, online training and attending seminars are some of
the ways to gain knowledge about investments. Investors
have series of investment avenues and each of them differ
in terms of risk, return, safety, security, regular income
and various other parameters. The investor has to choose
proper investment avenue, depending upon his specific need,
risk preference and expected returns. (Kothari 2013 : 476-
480)
There is a plethora of investment avenues, each
associated with varied risk-return trade-offs. Every
investment avenue is distinct in its characteristic, which
makes the investment decision fascinating. The investor

4
thus needs to carefully analyze each of its characteristics
and build a basket of assets that suits his risk profile
and complies with his objectives and goals. Hence,
investment decision making is a fascinating task to the
investor (A study on investment pattern amongst
academicians in Bangalore, n.d.).

KAPA

KAPA is a religious corporation organized under the

Philippine laws and registered with Securities and Exchange
Commission under SEC registration No. CN 201707724 on March
03, 2017 with office address located at Garay Arcade,
Barreda Street, Caramcam District, Bislig City, Surigao del
Sur and is represented by its Minister/Pastor Joel A.
Apolinario.

Donation

KAPA promised 30% of monthly returns to investors

after making a one-time donation of at least P10,000.
However, according to the Civil Code of the Philippines, a
donation is a voluntary transfer of possession without any
consideration and is considered a gift.

Religion and Morality

KAPA has presented itself as a religion (“a church

within a church”) although it is not clear whether it has a
set of doctrines, houses of worship, a structure of

5
religious leaders and lay followers, etc., the way other
religious have. To be a member of KAPA, one has to invest
at least P10,000 and sign a contract. Included in the
contract is that members should believe that baptism of the
Holy Spirit is attainable through the aid of money and that
Pastor Joel A. Apolinario is the “Modern Moses” of the new
generation. By signing the agreement, he eventually
confirms his beliefs and engaging himself as a multi-
religious. Multiple religious belonging refers to the idea
that individuals can belong to more than one religious
tradition (Cornille, 2002).
According to Stephen Gaukroger, "It was generally
assumed in the 17th century that religion provided the
unique basis for morality, and that without religion, there
could be no morality.” Morality came from the Latin
word moralis which means manner, character or proper
behavior. It is defined as the differentiation
of intentions, decisions and actions between those that are
distinguished as proper and those that are improper
(Sedley, 1987). Imparting knowledge or facilitating
learning is not the teachers’ only responsibility, they are
also responsible on assisting in developing the desirable
characteristics or moral values of students (Kuehn, 2018).

Securities and Exchange Commission

According to the Securities and Exchange Commission
(SEC) the schemes that may be employed may be described as
follows;
1) They offer their investment contracts in the
corresponding Facebook pages or secret Facebook groups and
chatroom, Youtube etc; 2) They offer unrealistic return on
investments ranging from 10% to 400% per month; 3) They

6
require their interested investors to pay their initial
investments by depositing their money to a specific bank
account, Coins.Ph account, GCash, through a money
remittance company and through face-to-payment with one of
the entity’s agents; 4) The investor shall then send
through a private message a copy of the proof of the
deposit to the offeror who shall send his confirmation
after validation; 5) They usually deliver payouts through
the above-mentioned methods; and 6) They usually claim that
they invest their funds in forex, bitcoin and other crypto
currencies to justify their earning capacity.
This investment scheme ordinarily collapses as fast as they
are created while leaving its investors behind and unable
to recoup their investments. The public is hereby informed
that such investment schemes, whether with the use of money
or crypto currencies, are considered as securities subject
to the regulatory authority of this Commission. The
recruitment of investor members under the guise of
sponsoring a person into the system is likewise considered
a form of investment solicitation or a sale of securities.
The offering or sale of securities to the public without a
permit or license from the Commission is a violation of
Section 8.1 of the Securities Regulation Code. Thus, any
person who, directly or indirectly, in connection with the
purchase or sale of any securities, (1) employ any device,
scheme, or artifice to defraud, (2) obtain money or
property by means of any untrue statement made, in light of
the circumstances under which they were made, not
misleading; or (3) engage in any act, transaction, practice
or course of business which operates or would operate as a
fraud or deceit upon any person shall likewise be
prosecuted and held criminally liable under Section 26 of

7
the Securities Regulation Code and penalized accordingly
pursuant to Section 73 of the SRC.
Investing always involves some degree of risk.
Investors can minimize the risk of investing unwisely by
asking questions and getting the facts about any
investment. There are things to be done to avoid investment
scam, (1) It sound so good to be true, (2) The promise of
guaranteed returns and (3) Pressure to buy right now.
Investors who learn of investing opportunities should
always be on the lookout for fraud. According to Warren
Buffet, "Risk comes from not knowing what you are doing".
When investing, understanding and getting information must
be done to avoid investment fraud risk.

Conceptual Framework

This study focused on the effect of the alleged

illegal investment operations of controversial religious
group Kapa Community Ministry International Inc.
specifically to the grade school teachers who was recruited
and encouraged to "donate" a significant amount. In this
study, the understanding of teachers regarding the proper
and legit investment of funds, KAPA investment scheme, and
donation is determined. Also, it states the financial
effect of KAPA’S closure to the lives of grade school
teachers, the willingness to still join the same investment
scheme in the future and the teachers opinion toward the
governments cease and desist order for KAPA.

8
 Figure 1.

Grade School KAPA Community Effects to Grade

Teachers of a Ministry School Teachers

Public School in International,

Butuan Inc.
 Knowledge
 Financial
about legit  Illegal stability
investment investment  Willingness to
join similar
 Understanding operation
investment
towards KAPA upon  Guise of a schemes
learning about it  Opinion towards
donation
closure
 Understanding on  Cease and
donation of the desist order
KAPA-member
teachers.


1
Statement of the Objectives

This study aims to know the effect of Kapa-Community

Ministry International, Inc. or commonly known as KAPA, on
its members particularly the elementary teachers. The
researchers would like to find answers to the following:
1. The knowledge of the teachers regarding the proper and
legit investment of funds.
2. The understanding of KAPA-member teachers about Kapa
Ministry upon learning about it.
3. The understanding on donation of the KAPA-member
teachers.
4. The effects of the closure of KAPA to the teachers in
terms of financial aspect.
5. The willingness of the teachers to join other schemes
similar to Kapa, in the future even having the
knowledge on proper investment.
6. The opinion of teachers on the government upon the
closure of Kapa.

Scope and Limitation of the Study

This study is primarily focused on the effects of KAPA

Ministry, Inc. in terms of the livelihood, income,
emotional and other aspects of elementary teachers who
engaged in the investment scheme of the organization. In
addition, the researchers aim to know the effect to the
teachers as professionals in engaging in this type of
scheme.

1
 This study is delimited to selected teachers in a
particular elementary school in Butuan City. The
researchers observe confidentiality upon the name of the
school to protect the educational institution as well as
the participants from potential harms including
psychological harm. The study will also involve
dissemination of questionnaires to the selected teachers
for the gathering of information.

Definition of Terms

Investment.It is a commitment of funds made in the

expectations of some favorable rate of return
(Fischer,n.d.)

Knowledge.It is a fact or condition of knowing something

with familiarity gained through experience or association
(Merriam Dictionary)

Legitimate Investment. It is an investment that conforms to

the law.

Scheme. It is an organized plan or system for doing

something, especially something dishonest or illegal that
will bring a good result (Cambridge dictionary)

Understanding. It is the knowledge and ability to judge a

particular situation or subject (Merriam Dictionary)

2
 Chapter 2

METHODOLOGY

This chapter presents and describes how the study is

conducted. It includes the research design, research
environment, population and sample, sampling technique,
ethical consideration, research instrument, data gathering
procedure, statistical treatment and data analysis.

Research Design

This study has used the qualitative method of research

using a combined close-ended and open-ended questionnaire
in the data gathering for the elementary teachers-
respondents that the researchers made themselves.
This research made used mainly of qualitative method
because this identifies and evaluates the effects brought
by the closure of KAPA, on the elementary teachers who
engaged in the investment scheme based on their respective
responses.

Research Environment, Population and Sample

The research was conducted within Butuan City where a

certain school has been selected as the main research
environment. From the total population of licensed teachers
in the said school 30 of the teachers have all engaged to

3
invest in KAPA and thus are used as the respondents of this
study.

Ethical Consideration

The researchers observed ethical standards all

throughout the research. The rights of the authors have
been considered and their works were properly given
credits. In addition, the researchers have obtained the
approval of the Program Dean as to the conduct of the
survey and the full consent of the selected respondents.
The respondents have been given the necessary knowledge
about the nature of the study. Thus, the researchers
provide assurance that the data gathered and identity of
the respondents will be kept with utmost confidentiality.

Research Instrument

The researchers have used a questionnaire for the

conduct of their survey as their main source of
information. The questions included in the said
questionnaire are based from the objective of the study.
For other related information, the researchers have used
the internet as their secondary source of information.

4
Data Gathering Procedure

The researchers make use of a written questionnaire.

The researchers, with the permission from the Respondents
distribute the questionnaire through personal delivery at
the school.
The Quota Sampling is the method used, in which all
the respondents have capitalized in the investment scheme.
The researchers managed to test 30 elementary teacher-
respondents who were eligibly teaching in the chosen grade
school.

With the respondents’ verbal approval, the researchers

themselves personally administered the inquiry through the
questionnaire, on the cause and effect brought to them by
joining KAPA.

Lastly, the results of the interpreted data were used

for the analysis to determine the effect of KAPA closure to
a specific group of elementary teachers in Butuan City.
Supported, with all the information and data that provide
essential part of this study were gathered through the use
of the internet.

Data Analysis

The data gathered from the open-ended questionnaires

was analyzed by using the constant comparative method. It
involves the process of taking information from data
collection and comparing it to emerging categories
(Creswell, 1998). This study involves identifying the

5
effects to the elementary teachers of the non-compliance of
KAPA with SEC; a qualitative research wherein this method
of analysis applies. It basically allows the researchers to
code the responses of the participants and compare them to
identify their similarities and differences in order to
interpret the gathered data and to generate conclusions
with regards to the objectives of this study.

6
 CHAPTER 3

RESULTS AND ANALYSIS

This chapter presents the results and analysis of the

data gathered from the respondents of the study. The
following subject matters are: (a) literacy of the
elementary teachers on proper and legitimate investments,
(b) their understanding about KAPA upon learning about it,
(c) effects of the closure on KAPA in terms of financial
aspect, (d) Their willingness to join other schemes similar
to KAPA even having the knowledge on proper investment, and
(e) their opinion on the government upon the closure of
Kapa.

Knowledge on Legitimate Investments

Knowledge is the information, understanding, or skill

that you get from experience or education (Merriam
Dictionary,n.d). Thus, the research questions used to
assess the said knowledge of the elementary teachers-
respondents’ are “Have you undergone basic
seminars/orientations regarding investment funds? If yes,
please specify what kind of seminar?” and “What is your
understanding about investment in general?”.
Out of the thirty (30) elementary teachers-respondents
seven (17) answered that they have not undergone basic
seminars on investment funds while the other thirteen (13)
have said they have been into seminars such as Sunlife,
Grepa Seminar, Cooperative (FICCO), banking, Alliance In

7
Motion (AIM) Global, trading, and other networking
organizations’ seminars.
With regards to the respondents understanding on
investment in general, all of them conveyed almost similar
ideas that it involves money where one expects something in
return in some future time. Those who have undergone
seminars stated the following: “Allocate money in
expectation of a higher benefit or return from the amount
intended”; “It is a monetary asset purchased with the idea
that the asset will provide income in the future”; “Earning
money”; “Investment in general is like mutual fund that is
professionally managed and pools funds and money from many
investors for the purpose of investing for securities”;
“Look forward for future life”; “savings then you have
earned it thru return of investment”; “Investment means
action or process of investing money for profit or material
suit”.
Those who have not undergone seminars indicated the
following: “putting money, it allows your money to grow”;
“The capital outlay of money usually income or profit”;
“Investment is something we make/do/allocate a huge amount
of money in order to get even more bigger amount of money
as time passes by”; “Entrusting your money to a company. It
might gain or loss profit at the end”; “investment”;
“investment is expecting something in return. It is an
asset intended to produce an income”.

Understanding about KAPA

Eight (8) of the respondents who have undergone

seminars gave a positive insight about KAPA because of the
higher return it offers to its members. Their responses

8
include: “The objectives/goals about it was actually good
and a lot of people specially those who are poor would be
encourage to invest for the bigger return.”; “It is an
investment aside from helping needy people”; “Investing
money for the daily sustainable”. However, two respondents
have both positive and negative thought about it. They
claimed, “Kapa, an investment scheme, is actually or
somehow good but upon learning from it, it just plays and
roll our money. Therefore, if no one pays-in no one pays
out.” and “Big granted among us, even donations but lies
behind back”. The latter statement quoted implies that KAPA
grants a higher return even if it is in the form of
donations, but it involves lies or false representation. In
addition, one has said a mere general conception that KAPA
is part of an investment.
Whereas the thirteen (13) respondents who have never
undergone seminars indicated that KAPA is a scam or an
investment scheme. Two of these respective elementary
teachers-respondents broadly stated, “KAPA is one of the
widely known investments which brought pros and cons to the
investment”, “Well, I think of it as a
pyramiding/networking. Whoever becomes the first member can
benefit the investment of everyone under their level”.

Effects on the Closure of KAPA

Upon the order of President Rodrigo Duterte to shut

down the said organization and other KAPA-like schemes,
many investors have expressed their sentiments saying that
the closure brought to them some negative effects in
certain aspects primarily on the money they invested.

9
 With regards to the elementary teachers who invested,
sixteen (16) out of thirty (30) respondents have shared how
it negatively affects their finances, for instance, one of
them stated, “More loans. Financial instability”. Other
responses include: “Additional income was totally dropped”;
“No more extra money”; “Loss of interest income to be
earned monthly”; “They suffer financial crisis. They cannot
pay the money they borrowed with compounded interest. How
to pay? They lost big amount of money.”; “it results losing
the money we invested”.; “(1) Great downfall (2) the
economy was also affected (3) People were out of budget.”
On the other hand, fourteen (14) of the thirty (30)
respondents said, “Since I have withdrawn my investment a
long time ago, its closure never really affects me”. The
remaining respondents however are not affected with the
closure since they have earned back the amount they
invested in KAPA.

Willingness to join future investment schemes

Investment involves putting money into an asset which

is not necessarily marketable in order to enjoy a series of
returns. The investor sacrifices some money today in
anticipation of a financial return in future. Accordingly,
the research inquires the willingness of the elementary
teachers-respondents’ in joining future investment schemes,
may it be a legitimate or KAPA-like ones.
In regards to investing in legitimate investment
funds, it was found out that out of thirty (30)
respondents, twenty-five (25) answered that they will no
longer invest. Most of the reasons were that they can no

10
longer trust their money to anyone and lose it in return.
However, four (4) of the respondents is still optimistic in
investing since it is a good way for obtaining greater
returns on their spare funds than being kept on a bank
account or piggy bank. Also, there is one (1) respondent
who answered to might invest in legitimate investment
houses if it has secured benefits using extra savings only.
Moreover, in investing to KAPA-like schemes, it was
presented that twenty-three (23) respondents strongly
expressed that they will never engage again on illegitimate
investment schemes. From those sixteen (16) who were
greatly affected by the closure of KAPA, eleven (11) of
them belonged with the said twenty-three (23) respondents.
On the contrary, the other five (5) are still willing to
invest because they wanted to recoup their lost hard-earned
money from KAPA. Specifically, two (2) of the said five (5)
respondents said to might invest in this type of
investments depending on the offered deals and returns.
On the other hand, the remaining fourteen (14)
respondents who were not drastically affected by the
closure were no longer willing to invest in similar
investment schemes in the future.

Opinion on the Government upon the closure of KAPA

Previously, the participants were asked if they are

still willing to join and invest in the future, given that
fact that all of them have experienced to be scammed and
not being able to receive the promised return due to the
government’s decision of closing KAPA. The respondents were
also asked about their thoughts towards the government upon

11
the declaration of closing the KAPA to fully assess the
impact of the KAPA investment scheme. Fourteen (14) out of
thirty (30) respondents provided a positive response, for
instance one of them answered, “I am in favor”. As for my
point of view, the government required the KAPA to be legit
and need their shares in terms of taxes percentage to be
earned to help fund public works and services. A couple of
respondents shared the same thought that it is a good
decision to close the KAPA because they are teaching the
people not to work and making them lazy and arrogant. For
them, KAPA has brought some negative effects to its
investors thus closing it would be a good remedy. From
those fourteen (14) who have a positive response to the
government, seven (7) of them were greatly affected by the
closure of KAPA.
On the other hand, sixteen (16) respondents gave some
negative opinions. One of the respondents said that it has
“no justice and due process”. Another respondent answered
that the government should have first inquired the people
who invested in the scheme whether the investment is bad or
of help to them before deciding to close the organization.
Some respondents were saddened on the action of the
government in closing the said organization. However, there
are also a few respondents who are neutral with regards to
the matter since they did not provide any opinions.

12
 CHAPTER 4

CONCLUSION AND RECOMMENDATIONS

CONCLUSION

Knowledge on Legitimate Investments

As defined by Fischer, investment is a commitment of

funds made in the expectations of some favorable rate of
return. It can be concluded that regardless if they have
undergone seminars or not, their knowledge about investment
are in accordance with the abovementioned definition.

Understanding about KAPA

Regardless of the fact that those eight (8)

respondents who have been into several legit investment
seminars, they never take into consideration their basic
knowledge about the legit investments on how they view KAPA
upon learning about it. Since they focus more on the
positive side of the higher return offered and on the
effect they could have, disregarding the possible factors
to be considered.
KAPA is basically registered and claims to be a
religious organization, however, it turns out that they
view KAPA as an investment opportunity. They were not
aware, until they have initiated to contribute a sum
certain in money, that a certain document is issued and

13
signed as an agreement where they are bound to adapt the
beliefs of the said religious organization.
Consequently, it can be concluded that elementary
teacher-respondents which have not undergone seminars who
have said that KAPA is a scam, still considered to invest
on it. As defined, morality means manner, character or
proper behavior. It is the differentiation of intentions,
decisions and actions between those that are distinguished
as proper and those that are improper (Sedley, 1987). Thus,
in connection to the teachers’ engagement in KAPA implies
that they have disregarded morality because they
prioritized the benefits that they can get out of it
particularly to support their physiological needs.
Furthermore, seminars on legit investments do not
imply that one has already enough proper understanding
about legitimate investments.

Effects on the Closure of KAPA

Based on the analysis, it can be concluded that

majority of the respondents’ finances were severely
affected because of the closure of KAPA. The money that was
invested came from different sources, some applied for
loans and others used their income or savings just to fund
their investment in KAPA. Those who invested in KAPA
through the use of loans as their source got additional
problems since they have to pay for the loan. Meanwhile,
other teachers who have used their savings to invest in
KAPA were not able to receive the return of their
investment.

14
 Hence, those teachers whose finances are not affected
have already received their money including the interest in
contrast to those finances that were severely affected.

Willingness to join future investment schemes

With regards to investing in legitimate versus

illegitimate investment schemes, it can be concluded that
more respondents are still willing to participate in KAPA-
like organizations compared to legitimate investment
houses, since they are more attracted to the return it
offers without considering the substance of the
organization be it a religious organization or not and
disregards the security risk of losing their hard-earned
money in the end.
Moreover, those five (5) respondents though greatly
affected by the closure of KAPA who are still willing to
engage in illegitimate investment schemes have not learned
their lesson yet since they are still looking after for
higher returns. It can be said that they are willing to
disregard the substance of a certain organization dealing
unto such kind of activities including their legal permit,
powers and authority vested unto by the state or law so
long as the return is beneficial to them compared to what
was generally offered in the market by banks and the like
industries.

Opinion on the Government upon the closure of KAPA

Based on the result of the survey, majority of the

respondents are in favor with the decision of the
government of shutting down the operation of KAPA. The

15
researcher concluded that the reason why the respondents
thinks it is the best thing to do is because KAPA is
scammed investment scheme which leads them to financial
instability. This impact enlightened many people
particularly the respondents to be more careful and
responsible in putting their money in a certain
organization, wherein because of the return they offer has
misbelieved by the public as an investment entity, which
was definitely not.
Additionally, the respondents who have provided
negative responses to the government’s action against KAPA
which are those who suffered great loss financially have
become more concerned on their personal interest including
their physiological needs rather than on the effect of KAPA
on the economy in general. It thus signifies that at times
where humans’ physiological needs are the issues, state
laws or government laws will never be their primary concern
to satisfy such.

RECOMMENDATIONS

 Teachers should have enough understanding and

knowledge about proper and legitimate investments
before entering any kinds of investment houses through
financial advisors and consultant so as to avoid
investment schemes.

16
 Take into consideration the effects of financial risks
associated in investing to different types of
investment schemes on their family’s future.

 Always look out for common “Red Flags”. Any investment

opportunity that claims you’ll receive substantially
more than that could be highly risky – or be an
outright fraud. Be extremely wary of claims on a
website that an investment will make incredible gains
or has huge upside and almost no risk.

 Check out the Investment and Verify the Investment

Professional. Ask whether and where the promoter of an
investment opportunity is registered to sell the
investment. A legitimate financial professional and
the firm must be registered with the Bureau, Financial
Industry Regulatory Authority (FINRA) or the
Securities and Exchange Commission (SEC), depending on
the type of business the individual or firm conducts.

 To the future researcher, it is highly suggested to

conduct study about the effects of KAPA investment to
non-professional individuals to foretell if the
effects are the same with the result of this study.

17