Unlike stocks and equity funds, fixed income funds have “fixed rates” of interests or returns. It is a type of mutual fund (MF) or unit investment trust fund (UITF) which is basically a pool of money that is invested in different types of fixed income securities.
The good thing about fixed income fund products is that they offer sureball, more convenient and more affordable ways of investing money in various fixed income securities in just one fund to satisfy different short-term to medium term financial goals like purchasing a car, a new house, or for a dream travel.
Remember our previous article about mutual funds and UITF’s? For short-term and medium-term financial goals (5 years or less), the best fund to invest in are the fixed income funds. But are you familiar about the different financial instruments that fixed income fund managers are investing in? Continue reading What Consists a Fixed Income Fund?