|
Fixed Income Fund - A fixed income fund is a fund who invests only in income securities that are fixed like bonds and certificates of deposit. These funds are reliable with a limit the sum of risk the investor assumes, although they may mean they receive a lesser return on their investment when if it had of been a riskier fund, they could have received more return on their investment. Fixed income investments security investors often move their securities from higher yielding bond to a lesser yielding bond if they believe the yield spread is between the two bonds is to vast. This is called the workout period, and if the investor has made the right move by doing this, he stands to gain more from the yield. |