What are fixed income products?
Fixed-income product is a term for wealth management. The interest rate of the wealth management product issued by it is fixed and unchanged. The purpose is to avoid interest rate and exchange rate risks, and it is a means to increase economic instability and control risks. Mainly to avoid interest rate and exchange rate risks, increase the means to manage economic instability and control risks, meet the needs of financiers, and obtain excess returns.
Fixed income refers to the income that investors receive at a predetermined rate. Like treasury bonds, bonds, certificates of deposit, etc., all have pre-fixed interest rates and dividends, and are common fixed-income products. The common feature of such products is that they generally have a clear expiration date. As long as they are held to maturity, they can obtain the previously agreed part of the income.
Therefore, it is relatively less risky than stocks. Because the risk of fixed income products is low, the returns are generally not too high, and they are relatively stable. Based on these characteristics, the main purpose of general investors to buy it is to resist market fluctuations.
Fixed income is not the same as defined income.
Since the risk is small, is the return of fixed income products certain? the answer is negative. Fixed income does not equal definite income, and fixed income products also have inherent risks. Because fixed-income products agree on the maturity date and income in advance, some investors need to pay additional liquidated damages if they pay in advance.
In addition, the issuer may also have the risk of default. Therefore, when purchasing fixed-income products, you should also determine according to your own risk acceptance. If you can’t accept a little risk at all, you can only store your money in the bank.
What are the characteristics of fixed income products?
- The investment period is fixed: generally one to three years.
2, the income is clear.
- The risk is lower first.
What are the fixed income products in the fund ?
Under normal circumstances, we regard currency funds and bond funds in funds as fixed income products. Monetary funds mainly invest in government bonds, bank certificates of deposit and central bank bills, and bond funds mainly invest in government bonds, financial bonds and corporate bonds.
Through the above content, I believe that everyone already knows the advantages of fixed income products. Compared with equity products that mainly invest in stocks, it has less risk and relatively stable returns, which can effectively resist market fluctuations. If you are a prudent investor, fixed income products are one of the first choices.