Fixed Income

Introduction

Fixed income refers to investments that provide a consistent return or regular income to the investor. Common examples include bonds, certificates of deposit (CDs), money market funds etc.

With fixed income investments, investors receive regular interest or dividend payments based on the terms of the investment. These payments are typically made at set intervals, such as monthly, quarterly, or annually.

Fixed income investments are generally considered less risky compared to equity investments because they offer a more predictable income stream and experience lower volatility. However, the returns on fixed income investments are typically lower than those on equity investments.

Type of Bonds

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• Government Bond:

  A debt security issued by a government to support government spending.



• Sovereign Gold Bond:

  A government-issued bond that allows investors to earn returns equivalent to gold's market price.



• Corporate Bond:

  A debt security issued by a corporation to raise funding for business activities.

Key Points:

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• Steady Returns:

  Fixed income investments offer predictable and regular interest payments.



• Lower Risk:

  These investments tend to be less volatile than stocks, making them a safer option.



• Income Generation:

  Ideal for investors seeking stable income and capital preservation.