Equity Investing Information

Stocks - Mutual Funds - Private Equity - Real Estate

Fixed-Income Funds

Fixed-income mutual funds generally invest in government and corporate bonds, secured mortgages, and other low-risk securities, which pay a fixed level of monthly or annual income.

Although these funds are generally unable to benefit from upturns in the economy, they provide a good low risk alternative to stocks and equity funds, for investors that are concerned with capital preservation and/or steady income.

One of the few risks associated with fixed-income funds is the short term implications of changing interest rates, especially in relation to bonds. A sudden rise in GIC and savings rates can make bond- and mortgage-backed investments less attractive, reducing their market value in the short term.