Risk And Return Involved In Fixed-Income Investment Strategies

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Risk and Return Involved In Fixed-Income Investment Strategies

If you wish to grab some stable returns from your investments, incorporating a fixed-income investment strategy is the way to go. It involves investing in lowrisk securities that provide fixed interest or part of profits for a specified time period and, on maturity, repays the principal amount. Types of fixed-income investments Exchange-Traded Funds Exchange-Traded Funds (ETFs) are baskets of securities that you can buy and sell on the stock exchange on a daily basis. These funds are linked with indices like Nifty and Sensex. Exchange-Traded Funds can be of assets like equity, bond, or even gold. Their trade values depend on the NAV of the particular asset. For instance, the value of a gold ETF is linked with the actual value of gold. Similarly, the value of a bond ETF moves in sync with the value of the bond. Debt Funds Debt funds are a way to invest in corporate bonds, Government securities such as treasury bills, and other money market instruments including commercial papers and certificates of deposit.


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