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.

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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. 

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