This program has STOPPED paying! Do not invest there!
Analysis of the AltronFx Investment Plans.
In our recent “First Thoughts” article about AltronFx, we said a few words about the company and also introduced its two investment plans. Here is what we said about the investment plans:
AltronFx offers two investment plans. Both of them pay interest on an hourly basis and return your deposit as part of your earnings. I suspect that will be an appealing feature to many investors as returns are as quick as possible. One of the plans runs for around 30 days while the other runs for 17.5 days. A quick look at the interest rates that are paid suggests to me that they might be a good compromise between profitability for the investor and long-term survivability of the company. However, this is only a first impression. Since the investment plans pay interest on an hourly basis, it will take a much closer look in order to fully understand how the plans work.
With this as an introduction, let’s take a look at the information that the website gives about the investment plans. Here it is:
Basic Plan
0.2% for 725 hours
$20 – $50,000
Total return. 145%
Net return. 45%
Premium Plan
0.3% for 420 hours
$300 – $100,000
Total return. 126%
Net return. 26%
In the way of clarification, we really don’t need to know the total and net returns as they can easily be computed from the other information. For example, for the Basic Plan, knowing that you receive 0.2% per hour for 725 hours, you simply multiply the two together to get the total gross return of 145%. And, since this includes your deposit, you subtract 100% from it to get your total net return of 45%.
This out of the way, it might be convenient if we convert the terms of the investment plans to days, since that’s the unit of time that we generally use when talking about the profitability of investment plans. To do the conversion, you simply divide the length of the plan in hours by 24 hours per day to get:
Basic Plan. 30.21 days
Premium Plan. 17.50 days
Now we are in a position to determine the daily net interest (DNI) offered by each of the investment plans. This, you will remember, is the TRUE measure of the profitability of an investment plan and it also gives you insights into the probable long-term survivability of an investment plan.
To get the DNI for an investment plan, you simply divide the total net interest by the number of days in the investment plan; it is the AVERAGE daily profit that you earn. For the Basic Plan, we divide the total net earnings of 45% by the 30.21-day length of the plan to get a DNI of 1.49%. For the Premium Plan, we divide the total net earnings of 26% by the 17.5-day length of the plan to get a DNI of 1.49%. Surprisingly, BOTH investments plans have the same DNI. We’ll have a lot more to say about that when we discuss the investment plans below.
There is one additional piece of information we can use about each of the investment plans. This is the number of days for them to break even. If you divide 100% by the gross hourly interest that is paid, you will get the breakeven point in hours. For the Basic Plan, dividing 100% by 0.2%, we get 500 hours. Dividing this by 24, we find that it takes around 21 days for the plan to break even. Doing the same calculation for the Premium Plan, we find that it breaks even in around 14 days.
Discussion.
Let’s start our discussion by taking a look at the most important piece of information we found out above. This is the fact that the DNIs of BOTH investment plans are approximately 1.5%. First of all, I should mention that this value is right at the “sweet spot” in-so-far-as what we suggested in the article in HYIP Insights #12. You may recall that we suggested that programs having investment plans with DNIs less than 1% have a good chance of long-term survival — although the income from them is not too great (at least by HYIP standards). On the other hand, we suggested that programs having plans with DNIs higher than 2% might not be good candidates for long term survival — even though, at least theoretically, you could make a lot of money from them. Well, with a DNI of 1.5% (right on the middle of these two extremes), the investment plans of AltronFx would appear to provide a satisfactory return without an exceptional risk. Remember that an average profit of 1.5% per day comes out to over 10% per week — which, at least in my opinion, is quite respectable.
OK, the DNI is good, but which of the two investment plans is better? Assuming that they both survive to maturity, the average daily profit you would make from either of them is identical. So, from the point of profitability, there is no advantage to either of them.
But, there are other factors to consider. If the funds that you have available for online investment are limited such that you cannot afford the minimum investment of the Premium Plan, then the decision is made for you; you will have to use the Basic Plan. However, if the minimum investment isn’t a problem, you have to think a little bit deeper.
An important thought that is always on the mind of the online investor is whether or not a program is going to survive long enough for him to recover his investment and, ideally, to make a handsome profit. From this point of view, it makes sense to use the Premium Plan as you will break even in only 14 days (two weeks). During the remaining three or four days in the plan you would be making “pure profit.” In contrast, using the Basic Plan, you have to wait 21 days (three weeks) before you will have to break even. However, after that, you will have around nine days during which you will be making pure profit.
Of course, if you use each of the plans once, you would make more profit from the Basic Plan (45% vs. 27%) because it is a longer plan. To compare the plans fairly, you should probably think in terms of using the Premium Plan TWICE to make it comparable to the Basic Plan. In this case, you would be comparing the 45% for the Basic Plan with 54% for the Premium Plan (used twice). A nice feature of this approach is that you have the 27% earnings of the first cycle of the Premium Plan in your pocket as “pure profit” when you go into the second cycle.
An interesting possibility for the adventuresome investor is to use the Premium Plan twice, but on the second cycle to reinvest your original deposit PLUS your earnings from the first cycle. This is a form of compounding and, although it is very risky (you can lose your profit from the first cycle!), you can make a LOT of money.
Conclusions.
AltronFx offers two investment plans. They pay interest on an hourly basis with your deposit included as part of your earnings. Surprisingly, the two plans are IDENTICAL with respect to profitability. So, the investor will need to consider other factors when deciding which plan to use. The Basic Plan might appeal to the investor with limited funds while the Premium Plan might appeal to others as, since its term is shorter, it entails less risk. An investor wishing to stay with the program longer can simply reinvest his deposit in this plan to obtain an investment scheme that is roughly the same length as the Basic Plan.
I hope this information is helpful to you.
Read AltronFx – Review #2
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