What are the benefits of fixed income investments?
At MaPP Investment Services, we believe that fixed income investments play a very important role in a well-balanced client portfolio. There are multiple types of fixed investments and our advisors are here to walk you through the decision process in deciding what is best suited for you.
Fixed income investments, at the fundamental level, pay a fixed interest rate at specified times. These types of investments are generally provided by municipalities, corporations, government or government sponsored agencies. It is very important to choose carefully when assessing the risk of these assets. Credit quality of the underlying issuer is of the utmost importance to protect from default risk.
The main reasons investors are drawn to this category of investment style is because they offer reliable income streams, diversification and historically have been the most conservative types of investments available.
Types of fixed investments include, but are not limited to:
- Certificate of Deposits (CDs)
- Tax exempt/taxable municipal bonds
- Corporate bonds
- Government sponsored agencies
- Mortgage-backed securities
- Treasury securities
- Zero coupon bonds
To learn more or add fixed income investments to your portfolio, contact MaPP at (330) 339-6413 or submit a form.
There is an inverse relationship between the price of fixed income investments and the yield: when price goes up, yield goes down, and vice versa. Market risk is a consideration if sold or redeemed prior to maturity. Some bonds have call features that may affect income.
Investments are subject to risk, including the loss of principal. Because investment return and principal value fluctuate, shares may be worth more or less than their original value. Some investments are not suitable for all investors, and there is no guarantee that any investing goal will be met. Past performance is no guarantee of future results. Talk to your financial advisor before making any investing decisions.