High Yield Investment Programs (Hyips)

Gustoe85

Is there any one who has a clear understanding about Hyips investments?.How do hyip programmes sustain their high interest income they promise their investors?

eskbanker

See https://www.investopedia.com/terms/h/high-yield-investment-program.asp before running in the opposite direction:

What is a 'High-Yield Investment Program - HYIP'
A high-yield investment program (HYIP) is a fraudulent investment scheme that purports to deliver extraordinarily high returns on investment. High-yield investment schemes often advertise yields of more than 100% per year in order to lure in victims. In reality, these high-yield investment programs are Ponzi schemes, and the organizers aim to steal the money invested. In a Ponzi scheme, money from new investors is taken to pay returns to established investors. Money is not invested and no actual underlying returns are earned, new money is just used to pay people who entered the scam earlier than they did.

This scam is also known as the "prime bank scam."

Linton

See https://www.cl.cam.ac.uk/~rnc1/hyips.pdf and a bbc pece on the research: https://www.bbc.co.uk/news/technology-17428613

dealer_wins

Linton wrote: »

See https://www.cl.cam.ac.uk/~rnc1/hyips.pdf and a bbc pece on the research: https://www.bbc.co.uk/news/technology-17428613

Interesting links

Same old story though, if it looks too good to be true it [STRIKE]nearly[/STRIKE] always is !!

DrSyn

I have no idea of what you have been looking at, but the following rule of thumb I find useful. So I pass it on to you.

Using some simple common sense, with current market and interest rates conditions you get :

Low risk: Interest rates for for the best accounts

(a) Instant access = 1.5%

(b) Fixed 5 year = 2.7%

This is with FSCS protection up to £85000.


Risk investment

(a) FTSE 100 = 4% yield (this is with 100 companies not just one).

(b) Income Funds = (1.25 x FTSE 100 yield) =5%


Very high risk : Above = 6%

I would think that it would be either a very high risk investment or scam territory. Whichever it is, you stand a good chance of loosing your money, which is why it is above the yield on the FTSE or Income Funds.