Friday, June 22, 2012

Fixed Income Investments

Fixed Income Investments, or fixed interest, are investments in the debt obligations of businesses and institutions. These commonly take the form of bonds with many institutions offering bond funds, or even bond index funds. Fixed income investments generally pay a fixed or predetermined series of cash flows including principal and interest payments. Fixed income investments generally tend to have lower return and risk than investments such as equities, particularly when considered as a diversified portfolio, or a portfolio of high credit quality bonds. Fixed income investments are often included in multi-asset portfolios and are an important tool in efficient or optimal asset allocation. Fixed income investments can be traded on an exchange, or traded in the interbank market, or not traded at all.

Similar Fund Terms: 
Fixed interest, bonds, debentures, notes, treasuries, MBS, securities, debt securities

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Fund Management Terminology and Concepts Explained:

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