Fixed Income Funds

Fixed income funds are the best way to get real returns on a regular basis. With fixed income investing, you’ll have a more predictable and transparent strategy for getting regular income from your investments. Because it’s always good to have some extra cash, fixed income funds are the most reliable way to get it. Whether you are currently working or retired, with the right investments you can get the money you need to live a more comfortable lifestyle, reducing stress and improving your quality of life. The top fixed income funds come from Fidelity, Black Rock and Charles Schwab. If you are interested in investing in fixed income funds, check out these most frequently asked questions to find out more.

Frequently Asked Questions ( 8 )   Add a Question

  1. How often will I get money?
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    The best thing about fixed income funds is how reliable they are. With fixed income funds you’ll get regularly scheduled payments as a return on your investments. These payments may occur once a year or more often, depending on the borrower.

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  2. What kind of securities are included in fixed income funds?
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    Fixed income funds are usually composed of short-term fixed income securities. These kinds of securities include government bonds, bank notes, treasury bills and certificates of deposit among other things. These safer options allow a greater guarantee on income, although not necessarily a higher return on your investment. The ratio of these securities will vary depending on your preferences.

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  3. What are the risks?
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    Fixed income funds are not without their share of risks. One risk you can expect as an investor of fixed income funds is inflation. As inflation occurs, it can make your money worth a lot less, so the amount you receive as income will have less spending-power than it did at the time of investment. Another risk is that a borrower can default on their payment in which case you could get nothing.

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  4. What is a fixed income ETF?
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    A fixed income ETF (exchange-traded fund) is a fixed income fund in which shares are traded on the stock exchange in order to track the bond market’s performance. With this kind of fixed income fund, income is usually received monthly rather than annually or semi-annually.

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  5. How much will I get paid?
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    The amount you will be paid depends on a number of factors. For one, how much you invest will obviously affect how much you can receive as income. Additionally, your scheduled payments will not always be the same. They could be more or they could be less, but payment is usually a guarantee.

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  6. Where can I find fixed income funds?
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    Fixed income funds can be found through a variety of financial service companies such as Fidelity Investments, Black Rock and Charles Schwab. These companies are experts in fixed income funds and will help you get the most from your money. Let their years and years of experience help guide you.

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  7. When should I invest?
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    It’s never too late to start investing in fixed income mutual funds, although for younger individuals there may be better options with promise of a higher return. However, seniors who are retired or are soon retiring may benefit the most from fixed income funds, because they can always depend on the income and benefit from it as they enjoy their retirement.

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  8. What are some examples of fixed income funds?
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    One great example of a fixed income fund is the Fidelity Spartan Short-Term Treasury Bond Index Fund Fidelity Advantage Class which offers an annual return of over 1%. It also has a lower expense ratio compared to most mutual funds. Another example is the Schwab Treasury Inflation Protected Securities Index Fund which offers over 2% in annual returns and also features a low expense ratio. Both of these fixed income options have been ranked among the top fixed income funds by Investopedia.

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