Fixed income意思
"Fixed income" is a term commonly used in finance and investing to describe investments that provide a steady stream of income over a period of time. These investments typically have a fixed rate of return, which means that the investor knows in advance how much interest they will earn on their investment.
Fixed income investments can include:
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Bonds: These are debt instruments issued by governments, corporations, or other entities to raise money from investors. Bonds typically pay interest at regular intervals until they mature, at which point the investor receives the principal amount invested.
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Certificates of Deposit (CDs): CDs are savings products offered by banks and credit unions that pay a fixed interest rate in exchange for the investor agreeing to leave their money on deposit for a specified period of time.
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Fixed Annuities: Annuities are insurance products that provide a stream of income in exchange for an upfront payment or series of payments. Fixed annuities guarantee a minimum rate of return, although the interest rate may be variable.
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Dividend-Paying Stocks: While not always considered fixed income, some stocks pay regular dividends to shareholders, providing a steady income stream. However, the amount of the dividend can change over time, and there is no guarantee that it will remain the same.
Fixed income investments are often used by investors to provide stability and income, and they can be an important part of a diversified investment portfolio. They are generally considered to be less risky than other types of investments, such as stocks, because the investor's return is guaranteed, and the principal investment is typically safe.