What is high yield investment?
In an actual sense, high yield investments are supposed to be fixed-income instruments.
All over the world, high yield investments are known for high return on investment (ROI) or big yields promises, whether the promises are true or not the fact remains that only a hand full gain from HYI, majority surfer.
Why is it called high? Its because if you loose you crash lol, but truly often HYI comes with very high risk (though this part is hidden from potential investors) rather they attract investors by offering a higher interest rate than safer.
What then is the logic behind high risk investments, why do people indulge it?
The concept is that what doesn’t kill you makes you stronger, An investor who is looking to make more money can indulge in borrowing, use his / her last income to invest with the mindset that his borrowed funds can be doubled in one instant or in a shortest while, however the result is not always the case.
Do people in develop countries indulge in high yield investment?
The truth is that in other countries where systems are checked, where businesses are monitored by the government and federal agencies, investors leverage on high yield investments after thorough and proper checks.
The problems with high yield investments like MMM and MBA Forex in Nigeria is that:
- Investment companies are not regulated properly:
In other country like emphasized above, before an investment company commences operation, the founders / owners of the investment company past through rigorous checks and processes, this is done to protect future investors. In Nigeria on the other hand, anyone can open Investment.
- They are instituted with fraud at the back of their mind and they are instituted to fail:
It’s a well calculated game, the founders have already plotted and are sure that in the shortest while they will cash out and run.
- High yield investments owners in Nigeria and Africa generally have no financial training and investment technical know-hows
Most of these guys owning investment companies up and down are either illiterates or have no experience in capital investment portfolio management.
They just start the companies from their bed room, no prior knowledge all they just need is a website, a bank account to collect people’s money and ability to make lofty promises.
Once a website is done, the next is advertisement, innocent investors will start pumping money and while they criminals ( Yahoo yahoo people) start cashing out instantly.
Nigeria investors never learn why?
Here are 5 tips to identify fraudulent high yield investment ( MMM, MBA forest)
- Check the company registration with relevant financial institutes:
NOTE: before any company in Nigeria can handle money with trust, the must have dully fully registered with:
- The central bank of Nigeria (CBN) here is how to check if a company is registered with CBN https://www.cbn.gov.ng on CBN’s website, look at reserve management and you can also contact them through their contact as seen https://www.cbn.gov.ng/Contacts/ inquiring the eligibility of the said investment company.
- Investigate the investment company with SEC:
SEC is the securities and exchange commission of Nigeria
Many of the fraudulent or illegal investment companies floated in Nigeria dies a natural death or ends up been closed down by SEC, so why not check with them first before putting in your hard earned money?
SEC can be found through this website https://sec.gov.ng or you can contact sec through these mediums
Plot 272, Samuel Adesujo Ademulegun Street, Central Business District , Abuja, FCT
Phone: +234 (0) 94621168 (8.30 am – 4pm)
- Evaluate how their ability to double or triple that money:
Many Nigeria’s don’t do this simple analysis, they just listen to big talks and transfer their hard earn money to these criminals (high yield investment owner’s in Nigeria).
Truth is, if you do a thorough background check, you will see that it’s obviously impossible for any investment to yield that ROI in a shortest time and on a regular bases as promised.
Once it’s apparent that they don’t have the financial ability, backup and existing business to double your investment, then take the exit door.
- Check the companies life span:
Must of these high yield investment companies don’t live past 2 years, if the said company is just starting with in 3 months, this risk is at 50%, if the company is within a year old then the risk is at 98.9% odd,
There is every tendency that high yield investment will not live pass two (2) years. Be wise!
- Check their networks,
The biggest strategy with these guys is they align with either celebrates or social influencers, the idea behind this reason to enable them spread the word faster in a very short period of time, what does a celebrate know about investment?
Once you find any such collaboration, take to heels.
Always seek the help of financial institutes for proper advise.
Why are you in a rush? You have that little capitals right? Why not invest in a business with track record? Incomes is slow you are saying right now, but income grows over time.
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