What is a Fixed Income?

Fixed income is income paid at a predetermined rate. For example, most securities such as bonds and preferred stocks require a fixed interest rate and dividend rate. Therefore, these securities are collectively referred to as fixed income securities. Investors seeking fixed income do not need to worry about their earnings being affected by the company's poor operating performance, but fixed market securities cannot guarantee that investors income will remain fixed in the event of changes in market interest rates or inflation. Investor returns are often adversely affected. Therefore, fixed income is relative.

fixed income

The so-called investment has risks, and the higher the returns, the higher the risks. Some people can use their in-depth knowledge of finance to make high-yield investments, and because of their high qualifications, their risks are relatively reduced. But after all, there are only a few people with a high level of financial understanding. For the majority of the people, these investment risks are difficult to bear. Then the fixed deposit income and bank interest of the bank are very good choices. Although the returns are small, the risks are also very small. The difficulty is also less.

Fixed income securities can provide a fixed amount or a cash flow calculated based on a fixed formula. For example, issuers of corporate bonds will commit to

1. Fixed term: generally 1 ~ 3 years, clear operation period, easy to arrange fund use plan;

fixed income

2. Confirmation of income: principal and interest are guaranteed, and the annualized income is generally 2 to 3 times the fixed deposit interest rate for the same period. A stable configuration is required;

3. High security: The security of funds is guaranteed through asset mortgage, equity pledge, guarantee company, and individual joint liability guarantee, etc .;

4, low cost: generally no subscription fee, related management fees, taxes and fees are deducted before income distribution, does not affect expected income

5, the threshold is higher: generally more than 1 million, 3 million (excluding) natural persons, no more than 50 places;

6. Fast fundraising: The fundraising speed is fast, which can usually be completed in one or two weeks;

7. Property independence: The trust property is independent and is not affected by the trust company. It can be used for mortgage depository banks to open special accounts and special funds;

8. Trust company: Registered capital is more than 300 million yuan, and business license is complete.