Mubasher Capital

Types of Fixed Income

Types of fixed income

Primary Market Benefits:

  1. 1. Companies can raise their capital at minimal costs.
  2. 2. An excellent approach to reduce risk with diversification.
  3. 3. Lack of market fluctuations.
  4. 4. Primary market is highly liquid because securities can be sold immediately.
  5. 5. This market has the potential to attract direct foreign investors.
  6. 6. Lower price manipulation.

Secondary Market Benefits:

 

  1. 1. Secondary market trading is accessible, as it doesn’t require a surplus of capital or funds.Secondary market trading is accessible, as it doesn’t require a surplus of capital or funds.
  2. 2. Analyzing a company’s relevance and performance is easy, by simply evaluating stock prices.
  3. 3. This market offers consumers informative insights about the company’s financial health.
  4. 4. victors can sell and buy stocks easily, ensuring liquidity.
  5. 5. Investors can generate an incredible profit in a shorter time.

 

Make great profits effortlessly.

Make great profits effortlessly.

EFTs are ideal for those who are just starting their investment journey, thanks to their low expense ratios, high liquidity, a wide selection of investment options, diversification, low investment threshold, and more.

This makes ETFs a great investment solution, one that allows investors to buy many stocks or bonds at once. ETFs, which combine multiple broad indices or industry sectors into a single investment, is a product that traders and investors are quite interested in.

ETFs provide exposure to a variety of stocks, bonds, and other assets, usually at a small expense. ETFs also are more liquid, it’s easier to buy and sell, than mutual funds and they can make the fixed-income portion of your portfolio quite easy.

Quick Facts

  1. 1. If the investor buys an S&P 500 ETFs, the money will be invested in the 500 companies in that index.
  2. 2. Throughout the trading day, ETFs prices shift regularly and you can purchase shares of ETFs whenever the stock market is open.
  3. 3. ETFs trade just like stocks on major exchanges, such as the NYSE and Nasdaq.
  4. 4. The key difference between ETFs and Mutual Funds is the way of buying and selling them
  5. 5. ETFs don’t have minimum investment requirements.
  6. 6. Minimum volatility ETFs are designed to help reduce risk and keep you invested.
  7. 7. ETFs can help generate income through bonds, dividend-paying stocks, and preferred stocks.
  8. 8. Core ETFs are diversified, low-cost funds, designed to help build a strong foundation for your portfolio.

Fixed Income & Mutual Income

Quick Facts:

  1. 1. Fixed-income markets represent the most significant subset of financial markets, regarding the number of issuances and market capitalization.
  2. 2. Fixed-income markets are three times bigger than the size of global stock markets.
  3. 3. Fixed income can offer a steady stream of income with less risk than stocks.
  4. 4. A higher interest income yield over the tenor of the bonds.
  5. 5. Fixed-income markets are three times bigger than the size of global equity markets.

Quick Facts:

  1. 1. A mutual fund is a type of investment vehicle consisting of a portfolio of stocks, bonds, or other securities.
  2. 2. Mutual funds provide access to diverse, professionally managed portfolios for small and individual investors.
  3. 3. Mutual funds are classified into numerous types based on the securities they invest in, their investment objectives, and the type of returns they seek..
  4. 4. Mutual funds charge annual fees, expense ratios, or commissions, which may affect their overall returns.