Fixed income instruments

If you want to begin investing but are not ready to take any risk, you still have plenty of choices available in the market. From your traditional bank fixed deposit, to fixed maturity plans (FMPs) of mutual funds there are a number of instruments to choose from. Yeah, the instruments which will offer you a fixed return on your investments.

One most informative thing about fixed income I will like to share with you is that, Fixed income assets broadly offer an annual return of eight to nine percent on your investment and returns from all the instruments are subject to tax that reduces the returns of these instruments, and if you take inflation into consideration, your returns come down even further.

There are various factors that affect your fixed income returns like bond yields, bond prices, availability of funds, short term funding investments.Due to these factors, the interest have constantly shown an upward movement.

For careful observation of fixed income there is a need of financial intellect, risk taing abilities which aim at focusing on holding time of the market rather than timing the market, because their are profits but only for long term tenures.............

But dont be disappointed, if you are interested in portfolio, I have a great idea for you..

Fixed income assets could be used to balance your portfolio as well. If you invest a part of your funds in these instruments, you can reduce the overall risk on your portfolio substantially.

With a prudent mix of fixed income assets and equity, you can create a robust portfolio that enhances your wealth significantly. ...........