Fixed Income Instruments
Fixed Income Instruments
These are investable instruments with very limited risk to the principle and the
return is paid as an interest to the investor based on the particular fixed income
instrument. The interest paid, could be quarterly, semi-annual or annual intervals. At the end of the term of deposit, (also known as maturity period) the capital
is returned to the investor.
Typical fixed income investment includes:
1. Fixed deposits offered by banks
2. Bonds issued by the Government of India
3. Bonds issued by Government related agencies such as HUDCO, NHAI etc
4. Bonds issued by corporates
As of June 2014, the typical return from a fixed income instrument varies between 8% and 11%.
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