What is Fixed Income?
Fixed income broadly refers to those types of investment security that pay investors fixed interest or dividend payments until its maturity date. At maturity, investors are repaid the principal amount they had invested. Government and corporate bonds are the most common types of fixed-income products.
Features of Fixed Income
- Fixed Tenure & interest rates
- Transparency & Credit ratings
- Easy Availability & hassle free
- PPF, Bank Fixed Deposits etc are Backed by Govt of India
Benefits of Fixed Income
- Steady income stream and focus on capital preservation.
- More stable returns than stocks. Lower risk.
- Higher claim to the assets in bankruptcies
- Government backing on some fixed income securities
- Tax benefits in certain schemes like 5-year bank fixed deposit, senior citizen savings scheme, PPF, NSC, etc.
Note :
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