Fixed Income Asset Classes

Different classes or types of investment assets such as fixed income investments are grouped together based on having a similar financial structure.

Fixed income asset classes. Generally the fixed income asset class refers to debt e g. Fixed income investments such as intermediate or longer term bond funds are still providing a decent yield despite the low interest rate environment says daren blonski managing principal of. Let s start with the most famous and favorite asset class in india which is fixed income. They are typically traded in the same financial markets and subject to the same rules and regulations.

Sovereign bonds domestic international corporate bonds domestic international loans money market ringgit foreign currencies in addition to the above kwap outsources fixed income mandates to external fund managers for both domestic and international markets. Most of these securities have fixed interest rates and that is partly where the fixed income term comes from. An asset class is a grouping of investments that exhibit similar characteristics and are subject to the same laws and regulations. These securities are essentially debt where principal and interest are repaid over time.

Fixed income is primarily comprised of bonds and cash. Equities stocks fixed income bonds cash and cash. Quantitative easing and lower yields have brought very large inflows into the fixed income asset class while at the same time ever reducing the attractiveness of its returns for the risk taken by investors. Treasury bonds and notes uk gilts japanese government bonds german bunds municipal bonds corporate bonds et alia.

Fixed income funds offer solutions for multiple investment topics such as hedging and yield enhancement or cost income ratio management. The upper end of fixed income classes compete with equity and stock returns p2p investments are returning more than the traditional fixed income classes p2p personal loans are 4x riskier than any other fixed income class but do not command the highest returns. Fixed income is a class of assets and securities that pay out a set level of cash flows to investors typically in the form of fixed interest or dividends. Fixed income asset class refers to the class of financial products where your investment amount is more or less protected and the returns are either fixed or predictable to a great extent.

The fixed income portfolio consist of four main sub asset classes.