Fixed-income investment

Fixed-Income Security

A security with a guaranteed return. Common examples include bonds, which pay periodic coupons representing a certain interest rate, and preferred stocks, which are legally required to receive a specified dividend at certain times. Typically, fixed-income securities offer lower risk and lower returns than common stock and similar investment vehicles.

Fixed-income investment.

Fixed-income investments typically pay interest or dividends on a regular schedule and may promise to return your principal at maturity, though that promise is not guaranteed in most cases.

Among the examples are government, corporate, and municipal bonds, preferred stock, and guaranteed investment contracts (GICs).

The advantage of holding fixed-income securities in an investment portfolio is that they provide regular, predictable income.

But a potential disadvantage of holding them over an extended period, or to maturity in the case of bonds, is that they may not increase in value the way equity investments may. As a result, a portfolio overweighted with fixed-income investments may make you more vulnerable to inflation risk.

References in periodicals archive ?
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is a specialty finance company focused on originating and acquiring loans and other fixed-income investments secured by commercial and multifamily real estate.
Risk arises when a fixed-income investment is sold before maturity.
Most professional advisers recommend clients diversify by owning some fixed-income investments.
The concept of duration was developed more than five decades ago to show that maturity length is not necessarily the best measure of time in judging a fixed-income investment.
This latest investment increases the total ISBI assets to approximately $288 million invested in LM Capital Group's Intermediate Fixed-Income investment strategy.
Western Asset's long performance track record and global presence has them positioned to continue their commitment to excellence in fixed-income investment management and client service.
In the long term, this negatively for future returns on fixed-income investments, says Grande.
But as the oldest of that generation now turns 60, they'll need to begin shifting their retirement assets into more secure, fixed-income investments a market that has played second-fiddle to equities over the past few decades but is now placed to get a boost, financial analysts say.
The accounts are invested in fixed-income investments, so "the returns have not been that great," Jones says.
The manager outlook on a range of fixed-income investments suffered the deepest drop from last quarter's already low levels.

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