Every investor dreams of high yield low risk investments which guarantee a 100% reliable investments scheme with the highest income rate ever possible. Private investors are often tempted by fantastic promises and “unique schemes” which lots of websites talk about. Some of the companies offering “best high yield investments” promise unbelievably high rates – as high as 45% per month or 6% a day! Yet, unfortunately, like Americans say, there is no such thing as a free lunch… High-yield investment plans (HYIP) are 99,99% a form of Ponzi schemes – widely known schemes of investment scams called so in the name of their inventor, Charles Ponzi. HYIP schemes, or Ponzi schemes, have thrived since the early 1900s. There are now plenty of such scams on the market.
All so-called high yield investment plans which promise you unsustainably high return rates of your invested capital, are scams based on the “pyramid” principle. It means that they are paying previous investors the money funded by new investors. HYIPs only live because of very aggressive advertising, and as soon as a HYIP begins to lack money, it disappears leaving hundreds or even thousands of people without their money.
Of course, you can not expect really safe high yield investments from a HYIP. Now we are going to tell you how to know a scam HYIP from an honest investment company.
First of all, operators of such organizations usually perform most of their activities over the internet. A perfect for all sorts of scam combination of widely available Internet and a number of systems of Electronic money has played an important role in the recent tremendous growth of HYIPs.
Not all of us remember that best high yield investments are legal and transparent investments. Scams are never like this. They usually set up a pompous, braggart website which is dedicated to a "unique investment program" with returns as high as 45%, 50% and more per month. Usually, unlike honest investment companies, HYIP funds disclose almost no details about ways and plans of actual money investment, nor any details of financial management, investment projects, etc. They often fall back upon vague explanations of their tremendous profits, saying, for example, that their company performs different trading operations on stock markets, or currency speculations. They may say that how their incredibly high returns are generated is a secret. In the meantime, the situation is simple: they just do nor invest any money at all!
Fraudulent enterprises like this often try to attract customers involving the names of very well-reputed, well-known financial organizations, for example, banks or investment companies. They may boast of working together with such organizations, like partners, or of placing a secure high yield investment into a project lead by such organization. The frauds seek to mislead investors by suggesting that well-reputed and financially sound institutions participate in their “investment programs”. Unfortunately, a private investor has practically no opportunities to check whether this is truth or lie, and many people do believe in such claims.
A real investment fund is usually a team of experienced and strategic-minded experts who are very searching about prospective trends and are continuously doing extensive market research. They care about prosperity of their business partners, their clients, and overall future condition of the market. They usually provide clear, transparent information and are always happy to consult a client. Scams are mostly non-specific; they do not show eagerness for explanations and will try to prevent you from getting any information about future use of your money.
When you seek for investment opportunities, beware of scams and Ponzi schemes! Only honest well-reputed investment organizations will provide you safe high yield investments!
