What is fixed income investment?

Fixed income refers to income earned on deposits that give fixed making like interest and are less risky. Most financial investments can be classified into two major asset classes – equity and fixed income. What is Equity? What is Fixed Income? What is Equity? Equity investment refers to buying stocks and stock-related mutual funds.

What is the difference between Equity Income and fixed income?

Equity income refers to making an income by trading shares and securities on stock exchanges, which involves a high risk on return concerning price fluctuations. Fixed income refers to income earned on deposits that give fixed making like interest and are less risky.

Are fixed income and equity investments correlated?

Also, the investment categories’ equity and fixed income returns are non-correlated. As a result, fixed-income investments add predictability to your portfolio, while equity investments help beat inflation and increase your financial worth by taking advantage of higher payoffs.