Newsletter from Investellect.
We just received a newsletter from Investellect (reviewed here). First, I’d like to reprint the newsletter and then I’d like to make a number of comments on it. Here goes…
Hello Dear Clients and Guests,
Investellect has been online for a really long time (975 Days Online!), and we are as much excited as you are, to have achieved such a great milestone. We have gone through many achievements during our online journey so we are trying our best to provide excellent services for long term perspective.
But Investellect is rewriting the history of all programs. This is just the beginning of our very huge and successful journey that is lying ahead. This is just a spark of a huge flame. We bet you will be surprised when you see even more such interviews in future, a third interview, a fourth one, and even a fifth one. This is not something which is impossible, because anything is possible for Investellect, and we have already proved ourselves to be the best program in the industry.Investellect is the perfect choice for you to make money. We are here to you to help you change your financial freedom. Only Investellect makes it possible for you.
Our Alexa stat speaks everything about us. Those stats are a proof for everyone to know how popular we are, and know how trustworthy we are. The traffic rank of Investellect has attained an unbelievable rank of 38000, which means that we are now among the top 38,000 websites around the world. We have more members from every place in the world, and our payment processors are getting flooded with so much of deposits daily. Many members are just investing and investing, because they believe in Investellect. Some members have even made deposits of amounts exceeding $45,000, and this just shows how much trustworthy, safe, and secure Investellect is a place to have your money invested.
Investellect is the place where you can get great percentage of your invested money in just one month’s time. Investellect is the only place where you can invest your money with minimum risk. Investellect has the safest and most profitable business model. We have strategized our business model to cater the needs of members who come from all aspects of life. We are open for all members across the globe, and we provide our service equally to everyone.
We have more exciting contests, and implementations, coming in our way. Stay tuned for those. As we had mentioned in one of our newsletters, when the other programs become a history, we will be here, being the present, and the future.
Thank you for staying with us.
Mostly, this newsletter amounts to telling us how successful Investellect has been. In fairness, this is true. One activity of Investellect that appears to have been very successful — are is still going on now (See News Commentary #204 that you can read here) — are the referral contests that they have had. A unique thing about these contests is that they have MANY winners — hundreds of them. And, of course, everyone comes out ahead in this: Investellect because of all their new paying customers and the contest winners because of the lucrative prizes that they have won.
But, it is important to read “between the lines” when reading a promotional newsletter such as this. Investellect is one of a number of companies that give a misleading number of days that they have been online. The newsletter says that Investellect has been online for 975 days. However, the date of incorporation given on the company documentation provided in the website says the company only came into existence in March of this year. Perhaps Investellect was operating under another name before that or they were operating as an unincorporated company?
When we first reviewed Investellect, we pointed out that it offered six investment plans, but that the minimum investment of a number of them would be beyond the reach of most investors. Here is what we said in the first part of our review about that:
In our brief “First Thoughts” news article about Investellect (that you can read here), we indicated that the company offers six different investment plans. Here is a brief summary of the plans as given in the Investellect website:
Standard Daily Plan
1.2% Daily for 60 Days
Minimum: $10
Maximum: $600
Principal: Back
Profit: Calendar DaysProfessional Daily Plan
1.4% Daily for 120 Days
Minimum: $800
Maximum: $50,000
Principal: Back
Profit: Calendar DaysIntelligent Accumulation 1
600% after 60 Days
Minimum: $7,000
Maximum: $30,000
Principal: Included
Profit: Business DaysIntelligent Accumulation 2
1700% after 120 Days
Minimum: $200
Maximum: $25,000
Principal: Included
Profit: Business DaysVIP
320% after 18 Days
Minimum: $40,000
Maximum: $50,000
Principal: Included
Profit: Business DaysVIP+
960% after 38 Days
Minimum: $25,000
Maximum: $30,000
Principal: Included
Profit: Business DaysAs you can see from the listing, the Standard Daily plan and the Professional Daily plan share a number of features while the other four programs, the two Intelligent Accumulation plans and the two VIP plans, share other features.
The Standard and Professional Daily plans share the following:
Pay interest daily.
Pay interest on calendar days.
Return your principal at the end of the investment term.The Intelligent Accumulation and VIP plans share the following:
Pay entire interest earnings at the end of the investment term.
Credit interest earnings on business (rather than calendar) days.
Include your principal as part of your interest earnings.First let’s take a look at the minimum and maximum investment limits for each of the different investment plans. This information is summarized below:
Standard Daily: $10 – $600
Professional Daily: $800 – $50,000
Intelligent Accumulation 1: $7,000 – $30,000
Intelligent Accumulation 2: $200 – $25,000
VIP: $40,000 – $50,000
VIP+: $25,000 – $30,000Taking a quick look at these limits, it looks like the typical online investor will only be interested in the two Daily plans and the second Intelligent Accumulation plan. The minimum investments for the other plans are extremely high and one wonders why such investment plans are even offered.
I suspect that most investors in Investellect have utilized the first two investment plans that pay interest on a daily basis. Since your principal is returned to you at the end of the plans, assuming that the program survives that long, all of your daily earnings are pure profit or, to put it another way, are “daily NET interest” — what we at Emily News refer to as DNI. The DNIs for these two plans are 1.2% and 1.4%. Well, we feel that programs that offer investment plans having DNIs less than 2% — especially those close to 1% — have a good chance of long term survival. So, if these were the only investment plans offered by Investellect, we would feel comfortable about the prospects for the long-term survival of Investellect.
However, as the previous summary shows, Investellect also offers business day investment plans that promise returns at a much greater rate than this. Here is what we said about them in our review:
Referring back to the listing of all the six investment plans offered by Investellect in the first Part of this review, let’s take a look at the Intelligent Accumulation 2 plan. We’ll look at this plan first because, as we already mentioned, it is the only one of the Business Day plans that has a minimum investment that is affordable to the typical HYIP investor. This minimum is $200 — which happens to be quite a bit less than the minimum for the Professional Daily plan. So, we will also compare these two plans after we analyze the Intelligent Accumulation 2 plan by itself. The Intelligent Accumulation 2 plan pays you a total GROSS return of 1,700% after 120 business days. Let’s first convert that to calendar days. One way to do it is to realize that there are seven calendar days for each five business days. So, the number of calendar days is 168 days (120/5 x 7) for this plan. Since your principal is returned as part of your earnings, your total NET return will be 1,600% (1,700 – 100). If you average this out over the 168 day period, your average daily net interest (DNI) will be 9.52% (1600/168). This is EXTREMELY high and it is questionable whether any HYIP can afford to sustain such a high return. Since this is all paid at the END of an investment term, one might wonder if he will get ANY return at all. Comparing this to the DNI of 1.4% for the Professional Daily plan, we see that there is no comparison. From the point of view of dollars and cents, the only way to go would be with the Intelligent Accumulation 2 plan. However, the catch is that it will take you well over five months to get ANY return at all from this plan. That’s a LOT of nail biting.
OK, let’s put some dollars and cents on this. This time we’ll invest our $1,000 with this program. The calculation is simple. Since it pays 1,700% after 168 calendar days, our total GROSS return will be $17,000 (17 x 1,000). Subtracting your investment of $1,000, your total profit will be $16,000 which, again, is EXTREMELY high.
Let’s also take a look at the Intelligent Accumulation 1 plan even though the minimum investment of $7,000 will be off the chart for most investors. This plan pays you a total GROSS return of 600% after 60 days. The total NET return would, of course be 100% less than this or 500%. Like for the previous investment plan, converting the 60 business days to calendar days, we get 84 (60/5 x 7) days. So, the average daily net interest (or DNI) would be 5.95% (500/84). This isn’t as crazy as the DNI of 9.52% for the Intelligent Accumulation 2 plan. But, it is still very very high and it would again be unlikely that this plan would be sustainable.
Let’s assume that we invest the minimum of $7,000 in this plan and see what will happen. Well, it is easy to get the final result. The GROSS return that you would receive will be six times your investment or $42,000 (6 x 7,000). If you subtract your investment of $7,000, your total NET profit will come to $35,000. Almost three months of nail biting before you get ANY return at all from your investment.
I will not bother to do calculations for the two VIP plans because the minimum investments required are so far out of reach of the typical HYIP investor.
There are two scary things about these high interest investment plans. First and foremost, it’s very unlikely that Investellect will be able to afford to pay such returns on a sustainable basis. Second, since the return on these plans is at the END of the plan, it is probable that Investellect has not had to pay returns on many such investments yet. The newsletter indicates that they have received a number of investments of over $45,000. Undoubtedly, these investments have been made in these high interest plans. I truly hope that Investellect will be able to afford to pay these investors what is due to them when the time comes.
And, of course, I hope that the rather bleak picture I have painted for the future of Investellect is completely wrong! Nothing would make me happier than to see them pay such investors what is due to them for many many years to come.
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