Explore Fixed-Income Instruments
A fixed-income instrument refers to an investment security that offers fixed returns, typically in the form of interest or dividends, over a specified period. It is suitable for conservative investors, retirees, and income-oriented individuals looking for a low-risk investment option.

Explore Fixed-Income Instruments

What are Fixed-Income Instruments?
A fixed-income instrument refers to an investment security that provides a fixed or predictable stream of income over a specified period. These instruments, issued by governments, corporations, and financial institutions, include options like NCDs, Corporate FDs, Corporate Bonds, SGBs, Tax-Free Bonds, Bonds for Senior Citizens, and High Yield Bonds.
Types of Fixed-Income Instruments
What are the benefits of Fixed-Income Instruments?
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Regular Income
Fixed-income instruments provide a steady stream of income through interest payments or periodic dividends.
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Capital Preservation
They offer relatively lower risk compared to equity investments, making them suitable for conservative investors looking to protect their capital.
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Diversification
By investing in a mix of fixed-income instruments, investors can spread out their investments and reduce risk exposure.
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Tax Efficiency
Certain fixed-income instruments, such as Tax Free Bonds or Bonds for Senior Citizens, offer tax benefits by providing tax-free interest income or tax deductions.

Risks associated with Fixed-Income Instruments
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Interest Rate Risk
Changes in interest rates can impact the market value of fixed-income instruments, potentially affecting their liquidity and prices.
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Credit Risk
There is a possibility of default by the issuer of the instrument, leading to a loss of principal and interest payments.
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Inflation Risk
Fixed-income instruments may not keep pace with inflation, which can erode the real value of returns over time.
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Liquidity Risk
Some fixed-income instruments may have limited liquidity, making it challenging to sell them in the secondary market at desired prices.
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