Explore Fixed-Income Instruments
A fixed-income instrument refers to an investment security that offers fixed returns, typically in the form of interest or dividends, over a specified period. It is suitable for conservative investors, retirees, and income-oriented individuals looking for a low-risk investment option.
What are Fixed-Income Instruments?
A fixed-income instrument refers to an investment security that provides a fixed or predictable stream of income over a specified period. These instruments, issued by governments, corporations, and financial institutions, include options like NCDs, Corporate FDs, Corporate Bonds, SGBs, Tax-Free Bonds, Bonds for Senior Citizens, and High Yield Bonds.
Types of Fixed-Income Instruments
What are the benefits of Fixed-Income Instruments?
-
Regular Income
Fixed-income instruments provide a steady stream of income through interest payments or periodic dividends.
-
Capital Preservation
They offer relatively lower risk compared to equity investments, making them suitable for conservative investors looking to protect their capital.
-
Diversification
By investing in a mix of fixed-income instruments, investors can spread out their investments and reduce risk exposure.
-
Tax Efficiency
Certain fixed-income instruments, such as Tax Free Bonds or Bonds for Senior Citizens, offer tax benefits by providing tax-free interest income or tax deductions.
Risks associated with Fixed-Income Instruments
-
Interest Rate Risk
Changes in interest rates can impact the market value of fixed-income instruments, potentially affecting their liquidity and prices.
-
Credit Risk
There is a possibility of default by the issuer of the instrument, leading to a loss of principal and interest payments.
-
Inflation Risk
Fixed-income instruments may beat the inflation by a slender margin resulting in lower real return.
-
Liquidity Risk
Some fixed-income instruments may have limited liquidity, making it challenging to sell them in the secondary market at desired prices.
Begin your investment journey with InCred Premier today!
Insights about the market.
-
Thu, 23 Jan 2025
6 mins
Tax saving investment options in India
Read More
-
Thu, 23 Jan 2025
5 mins
How to Invest in IPO: Essential Steps and Key Insights
Read More
-
Tue, 21 Jan 2025
3 mins
Advantages and Disadvantages of Investing in Unlisted Shares
Read More
-
Fri, 17 Jan 2025
3 mins
How to Save Tax by Investing in Mutual Funds (ELSS Mutual Funds)
Read More
-
Fri, 10 Jan 2025
1 min
Disclosure - HDFC Life Sanchay Par Advantage
Read More
-
Fri, 10 Jan 2025
1 min
Disclosure - HDFC SL ProGrowth Flexi
Read More
-
Fri, 10 Jan 2025
1 min
Disclosure - HDFC Life Smart Protect Plan
Read More
-
Fri, 10 Jan 2025
1 min
Disclosure - HDFC Life Click 2 Achieve
Read More
-
Fri, 20 Dec 2024
4 mins
SIP vs STP: Which is better?
Read More
-
Fri, 20 Dec 2024
2 mins
Lump Sum vs. Regular Investment: Which Strategy is Better for You?
Read More
-
Thu, 19 Dec 2024
7 mins
Understanding Mutual Funds: A Beginner's Guide to Smart Investing
Read More
-
Mon, 2 Dec 2024
8 mins
Portfolio Management Services or Equity Mutual Funds: Key differences
Read More
-
Tue, 26 Nov 2024
5 mins
How to Choose Unlisted Shares: A Guide for Indian Investors
Read More
-
Tue, 26 Nov 2024
3 mins
Are Large Cap Blue Chip Stocks the Right Investment for You?
Read More
-
Tue, 26 Nov 2024
3 mins
What is a Small Cap Fund? Understanding the Basics for High Returns.
Read More
-
Tue, 26 Nov 2024
4 mins
How much to Save for an Emergency Fund?
Read More
-
Tue, 26 Nov 2024
1 min
Disclosure - HDFC Life Click2Invest ULIP
Read More
-
Tue, 26 Nov 2024
2 mins
How Fixed Income Securities Enhances Portfolio Resilience in Today’s Market
Read More
-
Wed, 6 Nov 2024
4 mins
How to select a Fund Manager?
Read More
-
Tue, 5 Nov 2024
3 mins
US Fed Rate Cut Impact on Indian Stock Market
Read More
-
Tue, 5 Nov 2024
4 mins
Unlisted Shares in the Indian Financial Market
Read More
-
Tue, 5 Nov 2024
5 min read
Understanding Portfolio Management Services: A Comprehensive Guide
Read More
-
Tue, 5 Nov 2024
7 mins
Types of mutual funds in India: From equities to debt
Read More
-
Tue, 5 Nov 2024
8 mins
Things to keep in mind before investing in Mutual funds
Read More
-
Tue, 5 Nov 2024
4 mins
Should You Stay Invested in Equities During Market Uncertainty?
Read More
-
Tue, 5 Nov 2024
4 mins
Risk or Returns: What Should Be the Focus While Selecting a PMS?
Read More
-
Tue, 5 Nov 2024
9 mins
PMS vs AIF Funds: Decoding the Key Differences
Read More
-
Tue, 5 Nov 2024
4 mins
Opportunities in Private Equity: A Growing Asset Class for Indian HNIs
Read More
-
Tue, 5 Nov 2024
4 mins
New Fund Offer (NFO): Advantages and Drawbacks
Read More
-
Tue, 5 Nov 2024
7 mins
Large Cap PMS: What It Is and Why You Should Invest
Read More
-
Tue, 5 Nov 2024
4 mins
ITR filing 2024: ITR form, Documentation & Deadlines
Read More
-
Tue, 5 Nov 2024
3 mins
Is the Indian market overvalued?
Read More
-
Tue, 5 Nov 2024
4 mins
Fixed Deposits or Debt Mutual Funds: A Comparative Guide
Read More
-
Tue, 5 Nov 2024
5 min read
Exploring Alternatives: A Journey into Alternative Investment Funds (AIFs)
Read More
-
Thu, 17 Oct 2024
10 mins
Can Mutual Funds be Pledged as Collateral?
Read More
-
Tue, 1 Oct 2024
2 mins
Budget 2024: Change in Capital Gains Tax for Unlisted Shares
Read More
-
Tue, 1 Oct 2024
3 mins
Who should invest in unlisted shares?
Read More
-
Tue, 27 Aug 2024
5 mins
How to choose the right Mutual fund?
Read More
-
Tue, 20 Aug 2024
5 mins
Key terms associated with Life Insurance
Read More
-
Tue, 20 Aug 2024
4 mins
What is Life Insurance?
Read More
-
Tue, 20 Aug 2024
5 min read
Portfolio Management Services (PMS) Vs Mutual Funds (MFs): Investment Insights
Read More
-
Tue, 20 Aug 2024
7 mins
Personal Finance Calendar 2024-25
Read More
-
Tue, 20 Aug 2024
5 min read
Understanding the Recent Changes in KYC: Guidelines for Investors
Read More
Our Clients have been
Extremely Satisfied
Start your investment journey with InCred Premier today