What are Fixed Income Investments?
Fixed income investments, also known as fixed-income securities or debt securities, are investment vehicles that provide investors with a fixed or predictable stream of income over time. These investments typically involve lending money to an issuer, such as a government or corporation, in exchange for periodic interest payments and the return of the principal amount at maturity.
Can you lose money in a Fixed Income Fund?
Yes, it is possible to lose money in a Fixed Income Fund, although the extent of potential losses may vary depending on several factors. While fixed income investments such as bonds are generally considered less volatile than stocks, they are not risk-free. Fixed Income Funds are subject to various risks, including: Interest Rate Risk, Credit Risk, Inflation Risk, Liquidity Risk, and Market Risk. It’s essential to carefully consider the risks associated with Fixed Income Funds and consult with a financial advisor to determine whether they align with your investment objectives and risk tolerance.
Fixed Income Investment Examples
The most common Fixed Income Investment vehicles include Treasury Securities, Bonds (Corporate, Municipal and Government), CD’s, Annuities, and Money Market Instruments.
