Fixed income instruments are financial products that offer a fixed return, typically through regular interest payments. These instruments include bonds, certificates of deposit, and preferred stocks. As a knowledgeable professor, I must stress the importance of understanding the risks associated with fixed income instruments, such as interest rate risk and credit risk. It's crucial to diversify your portfolio with a mix of fixed income and equity investments to mitigate these risks. Remember, fixed income instruments can provide a steady stream of income, but it's essential to carefully consider their place in your investment strategy.
