Fixed income investment: financial security for the future

Fixed income investment: financial security for the future

Andrea Daly Aurenty Journalist

The search for future financial security has increased after the pandemic. The interest in safe investments or questions such as “what to invest incontinues to grow and making this decision is one of the most important for your future financial security.

Currently, the financial market offer is quite wide and allows adjusting to budgets, objectives, interests, among others. However, for effective and profitable decision making it is vital to understand the benefits of each type of investment and select the one that suits your needs.

Among the extensive offerings are fixed income investments that, although they may not have the highest return on investment, provide an important point for many investors: financial security in the future.

What are fixed income investments?

It is one of the many types of investments that has been characterized by attracting conservative and savers, since it is based on progressive profit in the future.

There are several types of fixed income investments based on the sector that issues them, the maturity period, and the yield. What varies in each of these is the amount of payment received by the investor and the ease of sale in the secondary market.

Advantages and disadvantages of fixed income investments

Advantages and disadvantages of fixed income investments

Selecting the type of investments that suits your needs can take time of research and understanding. Here are the pros and cons of 'fixed income to help you make a better investment decision.

Are fixed income investments considered safe investments?

The term “safe investment” is one that should not be used in any type of investment, since security is based on the financial market game that, although it can be studied and estimated, will never provide 100% security.

We then speak of low or high risk investments and those of fixed income usually fall into the low risk category, but, in turn, they are not the ones with the highest profitability in the financial market.

Investing in fixed income is then a way to secure your future with fixed payments from time to time that allow you to save or even face emergencies such as the pandemic in which millions of people became unemployed and only had these payments for their support without affecting your savings.

It can then be concluded that fixed income investments are not 100% safe, but rather they are the ones with the least risk.

How can I invest in fixed income?

Investing in general requires the help of a professional adviser to carry out the buying and selling transactions for you. If you are interested in learning more about the fixed income options currently offered in the market, BBVA’s financial advisers are at your disposal to provide all the necessary information to facilitate decision-making.

Investing and not having money sitting in your bank accounts has become an important aspect of future financial security. With good advice, you can count on high investment returns, based on the type of investments you decide to purchase.

Whatever your type of investment, without a doubt, the smartest decision for now and for the future is to invest.

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