Fixed Income? Is it worth it?
Fixed Income investing always gets a bad rep for being slow-growing and boring. However, it does have its place in the market. And in uncertain times it can offer safety that other assets can’t. But let’s get into the info so you can make a wise decision with help from your Qualified Financial Advisor:
What is Fixed Income?
Fixed income is a type of security that pays a set level of cash to its owners over a determined period. At the end of the period, known as the maturity date, the money invested is paid back to the investor.
These assets are seen in the form of Bonds, Money Market, Preference Shares and cash funds. Most common are government and corporate bonds.
One benefit identified by Investopedia about this type of investment is that if a company goes bankrupt, bondholders are typically paid before shareholders.
Where do I invest?
The safe assets are usually bought in the form of ETFs, Unit Trusts and retirement funds. They are thus very accessible to most people.
Speak to your financial advisor of the options available and what best suits your risk profile.
Fixed income investments should not be ignored just because they are the safer option. Depending on your investment goals, it could suit your needs. Speak to your financial advisor to find this out.