Fixed income refers to investment securities that provide a regular, predetermined payment to investors, typically in the form of interest or dividends.
These investments have a fixed or predictable income stream, making them more stable than variable-income securities. Common examples include government and corporate bonds, certificates of deposit (CDs), and preferred stocks.
Investors choose fixed-income securities for the consistent income they offer, along with the potential for capital preservation. Fixed income plays a crucial role in diversifying investment portfolios and managing risk.
