Fixed
income investments are an integral part of every well-balanced
portfolio. They provide safety of principal, regular interest
income, and the potential to generate capital gains whenever
interest rates move lower.Fixed income
investments also help to reduce the overall risk of your investment
portfolio. They provide a guaranteed fixed return when held to
maturity and are a source of stable cash flow. If you are an active
investor who currently owns stocks or equity mutual funds, fixed
income investments can add stability to the value of your portfolio
because of the guaranteed return they provide. There is a wide
variety of fixed income investments including Government of Canada
and Provincial Bonds, Federal Crown Corporation Bonds, corporate
bonds, stripped bonds ("strips") and
mortgage-backed securities. All are fully marketable and can be
sold at market value at any time, should you need access to your
funds. |