Why do fixed interest investments attract investors?

Fixed interest investments are quite popular among investors because they offer a regular income for a specific term with the belief that the principal will be paid at the end of the maturity date. They are usually issued by the government, semi-government, corporations and financial institutions to raise funds.  The top examples of fixed interest investments include corporate bonds, government and semi-government bonds, capital notes, debentures and income securities.

capital guaranteed investments

Fixed interest investments offer a wide range of benefits. You enjoy regular income returns at a set interest rate that is fixed for a specific term, offering greater certainty than shareholders dividends. Even if the interest rate falls, you continue earning the higher initial rate of interest till maturity. Also, your initial investment will be paid on maturity.

According to experts working in the market of capital guaranteed investments and fixed interest Investments, there are also some risks of investing in fixed interest.  For example, like shares, they are not guaranteed. If the issuing company fails, as an investor, you may lose all or a part of your investment. Taking professional help will help you invest sensibly in fixed deposits.

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