This post is part of Free Guide to Investing in HYIPs. Read the previous article. The analysis of interest rates will help us to determine what HYIP we’re dealing with. As it has been described above, there are 2 different types of HYIPs: low-risk and high-risk.
This category includes the most legitimate investment programs that can operate for many years:
• Moderate interest rate (from 10 to 25% per year)
• Affordable initial deposit (from $ 500)
• Professional and unique (not copied) websites
• Quite real business activity
• Reliable contact details
• Ability to quickly get an answer
• Simple and effective communication (phone, email, live chat)
• Transparent information on business and corporate documents
• Flawless, or at least a good reputation at studying reviews about this HYIP on the internet
• Only the average and long-term investment plans (at least 3, 6, 12 months).
Examples of these programs are legitimate HYIPs and financial pyramids, which, in the end, all are fraudulent and disappear with the money invested. High-risk HYIPs are divided into the following types:
Super long HYIPs: the interest rate from 0.5 to 2% per day, or 15 to 40% per month. The programs is in the market for more than 1 year. However, most of them are just super long investment plans, so it can take you a long time before you cover your initial deposit and start making profits.
Long-term HYIPs: interest rate varies from 2 to 3% per day. Such programs are in the market from 4 to 12 months.
Average HYIPs: interest rate from 3 to 7% per day. Typically, such programs function for about 2-3 weeks, maximum — 1-2 months.
Short-term HYIPs: interest rate from 7% per day. such programs function from about several days to 2 weeks.
It is important to know what the above-mentioned type the HYIP belongs as an effective investment strategy will comprise several categories. Strategies for investing will be described later in this blog.
Important Advice: Be careful with the interest rates. Some HYIP programs return your original investment on the last day of the investment plan. Thus, your daily / weekly or monthly payments comprise only interest! Other programs include the part of capital invested in the daily / weekly or monthly payments, you have your invested money already included in the interest rate. It is important to recognize the difference between these two approaches in your work!
The example below will better clarify this aspect:
The investment plan A
- 1.5% daily for 120 days
- initial deposit is included in the daily interest charges
- Total revenue: 1.5% x 120 = 180% — initial capital (= 100%), thus the net profit = 80%
- The result is that if you invested $ 100, your capital would make up $ 180 at the end date of the investment plan
Investment Plan B
- 1% daily for 120 days
- The initially invested capital is returned on the last day of the investment plan
- Total revenue: 1 x 120% = 120% of the net profit + your initial deposit
- The result is that if you invested $ 100, your capital would make up $220 at the end date of the investment plan.
Although the investment plan «B» contains the minimum possible interest, after 120 days it gives the best return, because the initial deposit is not included in the interest charges.
It is important:
Also remember that there is a difference in risk between these 2 investment plans: plan “B” supposes that your initial deposit will be returned after 120 days. In terms of plan “A” there is a partial return of the money every day! In the end, you will still get your 100% initial investment:
- After 100 days on the investment plan “B” (100 days x 1%)
- After 67 days on the investment plan “A” (67 days x 1.5%)
To be continued. Watch out for updates in the blog!