Wednesday, August 15, 2012

High Interest Rate HYIPs – Risk and Returns

Once in a while, some HYIP Administrators come up with this mouth watering offer of huge interest payout in their program. Of course, experience HYIP investors know very well to avoid real daily profit* over 4% daily. However, every now and then, a new HYIP with very well designed website template, original text, SSL encryption, DDOS protection, company registration, prompt online customer services/chat, and other trappings of a good HYIP, offers interest that look fairly ‘reasonable’ say 2.5% – 3.0% daily for 30, 45, 60, 90 days and beyond with or without principal returned.

This often presents a dilemma for most HYIP investors. The challenges here include the fact that the interest offered does not appear way over the roof when compared with those HYIPS with 4.0% real daily* profit and above.  The second challenge is that these HYIP sites may also passed some of the major criteria used in identifying good HYIPs. Under these circumstances, is it advisable to invest in such HYIPs?

While individual HYIP investors will generally have the final say on how they choose their HYIP, the best I can offer is to share my experience. It is instructive to say, I have earned profit with a HYIP that pays 2.5% real daily for 60 days with principal returned. However attempts at reaching similar milestone with HYIPs paying 2.8% and beyond daily for substantial number of days have been met with mixed successes.

My instinct at the moment is to avoid such HYIPs that offer a real daily profit of 2.8% and beyond. The lifespan of such HYIPs are generally less lower than those with lower interest, besides principal is mostly locked in for the duration of the investment, compounding only compounds the risk. If you are tempted to take the bait with such HYIPs, entry, principal recovery, and exit strategy must be diligently planned and adhered to. Again, never trust any HYIP; invest only what you can afford to lose!

*Real Daily Profit refer to the exclusion of principal in profit calculation

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