What is Fixed Income Investment?
Fixed income investment is focused on the preservation of capital and generating income. These include investing in government and corporate bonds. Bonds can offer a steady stream of income with lower volatility than stocks. Usually these securities pay investors a fixed or variable coupon until the maturity date. Upon maturity, the principal amount is returned to the investor. Fixed incomes investments can be used by investors to diversify their portfolio given these are not as risky as equities. Because the returns in this investment are generally reliable, it is particularly popular among people who are looking for a steady stream of income in retirement.