Fixed income
Also called: debt investments, debt funds, debt mutual fund
Investments in which you lend money in return for agreed interest and repayment, such as bonds, debentures, deposits and debt funds.
Fixed income is usually steadier than equity but can lose money through credit risk, interest-rate risk and inflation. Debt funds report a value every day, so they can show losses even when no borrower has defaulted.
Learn more in these lessons
- Equity and fixed incomeHow do bonds, deposits and debt funds differ from shares, and can they lose money?
- Asset allocationHow should you split your money between shares, fixed income and cash?
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