Fixed Income
Instruments providing set periodic returns, like bonds or sukuk.
Detailed Description
Fixed Income
What are fixed income investments primarily known for?
Fixed income investments are primarily known for providing regular, fixed interest payments and the return of principal at maturity.
What types of entities typically issue fixed income securities?
Fixed income securities are typically issued by governments, municipalities, and corporations.
What is one major risk associated with fixed income investments?
One major risk is interest rate risk, where bond prices may decline if interest rates rise.
How do fixed income investments benefit retirees?
Fixed income investments provide predictable income through regular interest payments, making them suitable for retirees seeking steady cash flow.
What is the difference between fixed income and equity investments?
Fixed income investments are debt instruments providing regular interest payments, while equity investments represent ownership in a company with potential for capital appreciation.