Fixed Income includes debentures, mortgages, term deposits, government and corporate bonds. Considered as defensive, this investment has the ability to diversify the range of portfolio assets, to earn better returns than bank deposits and to provide regular income stream.

A fixed interest security provides an investor with a regular interest payment from the security issuer. The value of the bond can fluctuate based on interest rate movements, and when the bond matures the loan is repaid in cash. Historically, bonds have provided a more consistent but lower return than shares. They are more volatile than cash investments but still relatively more stable asset class.

LEARN MORE Gaining an understanding of the investment basics empowers you to make the best investment decision and is an important first step for any investor.