HYI means High Yield investment. It is just a program that offers high returns on your investment. HYIPs are offering the most returns on the investors money. Interest rates are so high that people wonder how it is possible to get the kind of returns they advertise, and can go up to even 100% a month!

HYIP's use multiple investment strategies ranging from stock investments to properties and some can give returns because they are investing in other HYIPs! There are some HYIPs that are not doing any investments at all but are functioning as ponzi schemes.

HYIP's normally use e-currencies from investors as well as a mode of paying back, E-gold is their favorite method of payment.

HYIPs have gained notoriety over the years, which, in some cases is quite true. Its very name, “High Risk Investments” points at the fact that this is risky. Great gains do involve great risks. Moreover there are some non serious program owners who would love to take advantage of the gullible investors. It is true that there are more scams in this area than there are serious investment plans. People have made more losses than profits from these schemes.

There are two types of HYIPs. These are:

Investment in shares, gold and other trading set ups. These are the safer kind of HYIPs and offer good returns. There is less chance of these programs folding up. They are legitimate, verifiable and you can earn from this set up. The best stocks to invest in these days are

• Airlines. The stocks plummeted after 9/11 and the industry is going through ups and downs due to fuel prices and escalating costs. But this industry is set to grow a lot in the coming years. It is the top high yield investment these days.
• Restaurants, software, banks, energy, petroleum are areas that have suffered in the recent past. But these are all set to grow in the near future.

Banking or investing in offshore trading set ups. These are very dangerous. They have shady rules, they list some very convoluted technicalities in the small print and you can never benefit from them. They are the sort that can fold up and disappear with the investor’s money at a moment’s notice.

People invest in HYIPs in order to make profits and enhance their personal wealth. Since it is a high risk you should always select a program that offers transparency. Always look for human contact too. If you can establish a human whose email and phone number is provided, the chance is that the program is legitimate.

Always check if the program is registered. Check with SEC/Edgar. The database is available online. Again, all registered companies are not a good value for investments. Check the program and the people behind it.

Beware of extraordinarily high returns. If a program offers 80 or 90% return on investment, do not invest in it. HYIPs do give high rate of return, but bogus HYIPs promise more returns than is practical and feasible. If you are being offered a chance to invest in a program that is giving extremely high rates of interests, ask for explanations; find out how they can offer it. If they do not explain or have a stock and not very convincing explanation, stop immediately. The enterprise is a scam.

If you are planning on investing in HYIPs, start very small. This way, you can try the scheme and once you are sure that the scheme is stable, legitimate and you get good returns you can invest more.

If you can, it is advisable to check the antecedents of the program and its owners from Better Business Bureaus. It is always the sensible thing to do before investing in any HYIP.

Do not indulge in risky investments. Do not invest in a company nobody knows anything about, even if it is promising huge and lucrative returns. You will make losses.

HYIPs if they are reliable and dependable can give lucrative returns. Research the programs well. There are legitimate programs in the market. You can make profits if you select the right program and follow the tips given above.