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Sometimes called bonds, or gilts, fixed income assets pay a set rate of return over a fixed period of time.
If you are confident with these investments you might want to jump straight into the fixed income selector tool below and start researching the details. If you’re unsure about fixed income or would just like to find out a bit more, scroll down for help and information.
Not to be confused with savings bonds, fixed income bonds are a way for governments or companies to raise money. They effectively work in the same way as an IOU. When you buy a bond, you are lending a company or a government some money, for a fixed period of time, in exchange for a set percentage of return. They also have the added security of receiving the original issued value of the investment when it reaches maturity, or if the issuer repays earlier.
They are traded on the stock market, which means their price can go up and down. The riskier a government or company you are lending to, the higher the return rate will be because of the perceived increased risk that they might go bust and not be able to pay you back.
Fixed income investors lend money to companies or governments in return for interest, also known as yield.
There are a number of ways to generate an income from your investments, and fixed income is just one of them.
You can invest in your chosen fixed income investment through any one of our three account options:
Access a wide range of global investments in this flexible, unrestricted account.
Take advantage of tax free investing with our Stocks and Shares ISA today.