Fixed Income
Fixed income refers to any type of investment in which the borrower or issuer is obliged to make payments of a fixed amount on a fixed schedule. Fixed income have a term that is fixed refers to both the obligatory payments and the amount.
The fixed income is also applied to a person’s income that does not vary materially over a time.Fixed income contains
- Certificates of Deposits
- Saving Accounts
- Money market funds
- Annuities with mutual funds
- Exchange-traded funds
- Fixed income derivatives
Benefits of fixed income :
A major benefit of fixed income investing is the opportunity to predict income over a period of time. Even though fixed income investments typically don't result in enormous financial returns, they also do not come with the high degree of risk associated with more aggressive investment strategies.