Fixed income

Fixed Income Fixed Income refers to investments that provide a predetermined or regular income in the form of interest or dividends over a specified period. These instruments are generally considered lower-risk compared to equities because they offer predictable cash flows, though their potential for high returns is usually limited. Common examples of fixed-income instruments include: Bonds (government, corporate, or municipal) Certificates of Deposit (CDs) Treasury bills and notes Fixed-deposit accounts in banks Investors often use fixed-income securities to preserve capital, generate steady income, and diversify their investment portfolio.

Example: An investor buys a 10-year government bond that pays 5% annual interest. The investor will receive fixed interest payments each year, providing a predictable income stream.