Some of the risks associated with high yields include:
The investment may be more risky. As mentioned above, there is typically a positive relationship between yield and risk. This means that investments with higher yields may be more risky.
The investment may not generate the expected income. The yield of an investment is based on historical data. However, there is no guarantee that the investment will continue to generate the same amount of income in the future.
The investment may lose value. The value of an investment can fluctuate over time. This means that the investment may lose value, even if it continues to generate income.