In the fixed income plans the type of returns for any investment will be fixed or easy to predict. These plans allow us to get paid on regular intervals, i.e. based on our choice such as annually, half-yearly, quarterly, and even monthly basis also. Such investments help to raise the overall capital of the organization and the returns will be paid as per the security bonds. These plans also include the bond funds, ETFs, CDs and money market funds.
§ Bond Funds are also known to be debt funds, which invest in bonds or any other debt securities. The probability of losing the value of the bond is more in this type due to any kind of wrong commitment by the bond managers to sell towards any kind of rising interest rate environment. These funds carry a low credit rating of BBB in most of the cases.
§ Exchange trade funds (ETF) value is based on the net assessment value of underlying stocks. The trade is carried out in ETFs are similar to that of mutual funds, but the only difference between both lies in the trading scenario. In ETFs, trading is carried out throughout the day and in mutual funds trade will be done only once in a day, i.e. at the end of the day.
§ Company deposits are invested for a fixed period with a defined rate of interest. These deposits are generally offered by the financial and non-banking financial companies (NBFC). The maturity for such deposits will be ranging from few months to few years from the time of investment.
§ Money market funds are known to be open-ended mutual funds, which are invested in short-term debt securities. These are considered to be safer than the bank deposits with a provision of higher yield. However, these funds are not insured by FDIC and NCUA. Therefore the possibility of money loss cannot be ignored in these type of investments.
Therefore, at PJ INVESTMENTS we provide the following information to our customers on:
§ Different types of fixed income plans
§ Advantages, disadvantages and risks involved with different types
§ Market trends and best suitable approaches based on the live data about these plans