Why invest in fixed-income securities?
Fixed-income securities appeal to investors for several reasons: • Diversification By diversifying your portfolio with fixed-income securities, you can reduce your investment risk and potentially increase your returns over time. • Safety Fixed-income securities provide a steady stream of income and an issuer-guaranteed pay-back price if held to maturity. In addition, the safety of a fixed-income security is reflected in the credit rating of the issuer. • Certainty High-quality fixed-income securities can provide a series of predictable cash flows over a period of time with minimal risk to their invested capital. This feature is essential for budgeting and long-term planning. • Choice The multitude of fixed-income securities available today provides investors with a flexible means to increase the value of their investments.
