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Risk and Return Involved In Fixed-Income Investment Strategies

Fixed-income investment strategies involve stable returns and low risk. Learn how to multiply your wealth with different fixed-income securities.<br>

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Risk and Return Involved In Fixed-Income Investment Strategies

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  1. Risk and Return Involved In Fixed-Income Investment Strategies If you wish to grab some stable returns from your investments, incorporating a fixed-income investment strategy is the way to go. It involves investing in low- risk securities that provide fixed interest or part of profits for a specified time period and, on maturity, repays the principal amount. Types of fixed-income investments Exchange-Traded Funds Exchange-Traded Funds (ETFs) are baskets of securities that you can buy and sell on the stock exchange on a daily basis. These funds are linked with indices like Nifty and Sensex. Exchange-Traded Funds can be of assets like equity, bond, or even gold. Their trade values depend on the NAV of the particular asset. For instance, the value of a gold ETF is linked with the actual value of gold. Similarly, the value of a bond ETF moves in sync with the value of the bond. Debt Funds Debt funds are a way to invest in corporate bonds, Government securities such as treasury bills, and other money market instruments including commercial papers and certificates of deposit.

  2. Money Market Funds Money market funds are a category of mutual funds. As the name suggests, these schemes mainly invest in money market instruments. As per the rules determined by SEBI, it is necessary for these schemes to invest in market instruments with a maturity of up to one year. Money market instruments mainly include treasury bills, certificates of deposit, commercial papers, repurchase agreements, etc. Government-backed investments You can choose to invest exclusively in Government-backed investment opportunities. These come with a sense of security that the amount invested will furnish returns. Learn more about the fixed-income investment options on the TejiMandi app. The experts at TejiMandi analyse your risk profile and help you build a strong fixed-income investment strategy. Learn How To Calculate The Risk Of Your Portfolio. In conclusion Being risk-averse should not stop you from investing to grow your wealth. Fixed-income investments are the perfect option to channelize your savings in stable and secure options that provide continuous returns while building a financial backup.

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