Term deposits, bonds and hybrids are all forms of fixed income investments. Find out more about each type of fixed income investment and how you might go about buying them in your super fund.
Defensive investments and fixed income
Bonds, term deposits and hybrids are all fixed income investments, and appeal to investors wanting a regular income stream.
The value of fixed income investments, especially bonds are affected by changes in interest rates.
Governments and companies borrow money to meet their investment needs. One of the ways they do this is by issuing bonds.
You can buy bonds through ETFs or managed funds. We look at the pros and cons.
A term deposit is useful for anyone interested in low-risk investing, particularly people who are very close to or already in retirement.
While generally classified as fixed income investments, hybrids have characteristics of both debt and equity.
A fixed income managed fund is a way to potentially boost your returns, while protecting your capital.
If you are using a fixed income fund to pay you income to live on in retirement you must be confident in your choice - a fund manager can help.
Many investors think bonds are out of reach, but in this video we show you how you can invest in 100’s of bonds at your fingertips for just a few thousand dollars.
Before you get swept up in the hype around yield that surrounds hybrids it’s important to look at the risks involved in this type of investment.