Diversifying a portfolio is essential for any investor looking to maximize returns while minimizing risk. An important aspect of diversifying is to include fixed income investments. Fixed income investments provide a steady stream of income and can be a great way to balance out more volatile investments in the equity market.
Fixed income investments are a popular choice for investors seeking a steady source of income. They are often considered low-risk investments, as the income generated is fixed and the principal invested is generally considered to be safe. Examples of fixed income investments include bonds, Treasuries, and certificates of deposit (CDs).