What is fixed income?
When it comes to investing, many people start with equities (also known as stocks). While most investors understand that stocks are shares in the ownership of a company, the role of bonds (also known as fixed-income securities) may not be as clear.
When a company needs money to expand or grow its business, it can also issue debt in the form of fixed-income securities, which can trade on the bond market, just like equities trade on the stock market. Fixed-income securities are any investment in which the issuer is obliged to make a fixed payment on a fixed schedule, although the amounts of the payments can vary.
Reasons to consider fixed-income funds
When you buy a fixed-income mutual fund or ETF, you are indirectly buying the debt that a company, government or government agency has issued.
Fixed-income funds can play an important role in your investment strategy by helping to potentially deliver income, offset some stock market risk in your portfolio and manage volatility. The fixed-income category includes fixed-income securities and funds, ETFs and GICs.
Fixed-income funds may help:
|Generate income||Preserve capital||Lower portfolio volatility|
|The coupon payments bonds offer can help build an income stream that can be reinvested or used to manage cash-flow needs.||Repayment of the bond’s original investment can help investors protect capital and meet financial needs.
||Bonds are often less volatile than stocks and can help lower a portfolio’s risk.|
What type of fixed-income funds might work for your investment strategy?
May help to protect against stock market volatility.
A one-ticket solution – balance steady income with potential for growth.
Achieve higher yield and return potential.
Matching fixed-income funds to investment goals
As with many investment decisions, the process starts with your specific investment goals, time horizon and tolerance for risk. Here are some general guidelines; you and your advisor will need to determine if they apply and how they are relevant to your individual situation.
|If your goal is to:||Consider the following type of fixed-income fund(s):|
|Help protect against stock market downturns||An investment-grade core solution|
|Increase income potential||A high-yield solution
a multi-sector solution
|Meet an approaching goal||A short-term investment-grade solution|
Invest with an experienced fixed-income manager
Fidelity offers a comprehensive lineup of products designed to meet investor needs for diversification* and income. Our investment capabilities extend globally, connecting hundreds of fixed-income professionals with hundreds of equity professionals analyzing the same companies. Fidelity’s fixed income and equity research analysts work together to develop a 360-degree view by hearing a company’s pitch to both bond holders and shareholders – not just one or the other – and exchange their insights. Our product development and asset allocation teams are constantly reacting to changing market and credit conditions to offer investment solutions for today and the future.
|A global network
A wide investment reach through Fidelity’s extensive global network of credit specialists, equity analysts, and asset allocation professionals.
Connecting fixed-income investment professionals with equity investment professionals to gain a 360-degree view of the capital structure.
A team-based investment approach that is clearly defined and repeatable and that fosters deeper levels of collaboration.
Canadian Fixed-Income Funds
- Fidelity Canadian Bond Fund
- Fidelity Canadian Money Market Fund
- Fidelity Canadian Short Term Bond Fund
- Fidelity Corporate Bond Fund
- Fidelity Tactical Fixed Income Fund
U.S. Fixed-Income Funds
- Fidelity American High Yield Fund
- Fidelity American High Yield Currency Neutral Fund
- Fidelity Floating Rate High Income Fund
- Fidelity Floating Rate High Income Currency Neutral Fund
- Fidelity Multi-Sector Bond Fund
- Fidelity Multi-sector Bond Currency Neutral Fund
- Fidelity U.S. Money Market Fund
Global Fixed-Income Funds
- Fidelity Global Bond Fund
- Fidelity Global Bond Currency Neutral Fund
- Fidelity Investment Grade Total Bond Fund
- Fidelity Investment Grade Total Bond Currency Neutral Fund
- Fidelity Strategic Income Fund
- Fidelity Strategic Income Currency Neutral Fund
Private Investment Pools