Definition: What are High Yield Investments?


High yield investments are investments that promise a higher rate of return than other investments in the same class.

It is important to note, however, that high yield investments are also typically much riskier than similar types of investments.

Image Source: What are High Yield Investments?



As such, investments that claim to be high yield investments should be approached with some caution by the investor. 

High yield bonds, for instance, are rated below investment grade and are often called “junk bonds.”

Generally, in all types of investing there is a sliding scale that relates to risk and reward. The more reward you want, the more risk you are taking with any given investment. 



AdvisoryHQ (AHQ) Disclaimer:

Reasonable efforts have been made by AdvisoryHQ to present accurate information, however all info is presented without warranty. Review AdvisoryHQ’s Terms for details. Also review each firm’s site for the most updated data, rates and info.

Note: Firms and products, including the one(s) reviewed above, may be AdvisoryHQ's affiliates. Click to view AdvisoryHQ's advertiser disclosures.