Fixed-income securities guarantee returns, representing a liability for the issuer. These investments produce periodic returns, with a constant interest rate unaffected by market changes. The predetermined maturity value is disclosed at investment time, making it a popular choice for those preferring secure returns over market risk exposure.

Who Should Invest in Fixed-Income Securities?

Fixed income bonds attract investors seeking the safest investment vehicles, particularly those apprehensive about stock market volatility and interested in stable investments. These are ideal for diversifying portfolios and ensuring steady dividends during market downturns, appealing to older investors seeking low-risk, stable returns.