Like CDs, money market funds can offer 4% or even 5% returns virtually risk-free, making these high-end bank savings accounts an optimal low-risk investment these days. "This high-interest-rate
F Fund investors are rewarded with the opportunity to earn higher rates of return over the long term than they would from investments in short-term securities such as the G Fund. The overall risk is relatively low in comparison to certain other fixed income investments in the market because the F Fund includes only investment-grade securities.
Money market funds are fixed-income mutual funds that invest in high-quality debt securities, usually with very short maturities and low credit risk. Just know that bonds can lose value and
Commodities — Products, such as wheat or gold investing. To take diversification one step further, you can also diversify even within one asset class. Take stocks, for example. You have the option of buying a mutual fund or a single individual stock. You can buy Nike stock, and you can buy a mutual fund.
The fixed income allocation usually makes up 30 to 40 per cent of the total portfolio. These investments are chosen to fulfill certain requirements, namely income and safety. They are also depended upon to perform when the equity portion is not performing. The benefit of such uncorrelated investments is that they perform when the rest of the
8 Questions on the Bond Market and Rate Hikes. More interest rate hikes are likely this year as the Federal Reserve tries to curb inflation; here are answers to eight common questions on ways these hikes may affect the fixed income markets and how to navigate this higher-rate environment. Collin Martin, Cooper Howard.
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