financial planning product search remove icon

Fixed Income Security Products, What are they? - Advice, Planning, Management - Sabre Financial Kingsbridge, Salcombe, Totnes, Devon

Fixed Income Products.

Investment Trust Advice, Planning & Management

Think of it as lending your money, but on a massive scale and the beneficiaries are companies and governments. When you put your money into Fixed Interest Securities, you will receive regular payments based on a fixed interest rate and at the end of the agreed investment period you will be repaid the investment capital. Loans to the British Government are called Gilts and loans to companies are known as Corporate Bonds. These are very different to with-profit bonds.

Below, you can can find out more about Fixed Income Products, but if you want to talk to one of our experienced Fixed Income Investment Advisers please call, email or use our contact form.

Simply call us on 01548 856444 or email:advisers@sabrefinancial.co.uk

Get Fixed Income Security Product Advice

Fixed Interest Securities Benefits:

  • Unlike equities, your income will be pre-determined. 
  • Your right to receive the interest, and the final return, can be traded on the stock market to other investors. 
  • The amount of interest paid will be greater than deposit accounts, because the risks are slightly higher.
  • Government bonds are regarded as relatively safe. 
  • Most Corporate Bond funds state they use only Investment Grade Corporate Bonds, which are bonds with a very low, to medium level of risk. 

Fixed Interest Securities Drawbacks:

  • There is some degree of risk with Fixed Interest Securities. 
  • There's always a chance that the loan may not be repaid. 
  • Gilts and companies with high credit ratings tend to be more secure.
  • Some funds state they invest in Speculative Grade Corporate Bonds, also known as High Yield, or Junk Bonds. 
  • Although higher rates of interest are paid, these are very high risk.
  • If savings account interest rates rise, then the amount of extra interest gained by investing in the fixed interest investment will reduce, even though the risk will stay the same. It makes it less valuable to other investors and means you will get less if you sell it. 

Talk to an Fixed Income Product Advisor

Simply call us on 01548 856444 or email:advisers@sabrefinancial.co.uk

Get Fixed Income Security Product Advice