Fixed Income Fund
DEFINITION
A fixed income fund mainly invests in bonds and other debt securities, such as government or corporate bonds. These funds usually make payments to investors on a regular schedule, often as interest or dividends, although the amount paid can vary.
ELI5
It is like a basket filled mostly with loans such as bonds. The basket aims to pay investors money regularly, even though the amount may change.
Other related terms
Exchange-Traded Fund (ETF)
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HFE Letter
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Third Party Liability
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Mortgage Servicing Ratio (MSR)
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