Why are more people invested in fixed income assets?
Updated: Jul 13
Specifically, in the uncertain financial times we have found ourselves in due to the recent Covid-19 outbreak, more investors are recognising the financial benefits to exploring fixed income assets and expanding their portfolios to include as such. This is due to many positive factors of this market, such as the stability available, capital protection and returns, all of which we will be going into detail about today.
1. Risk level: LOW
Widely recognised as a safer investment, fixed income properties are a significantly lower risk investment than stocks and buy to let investments. This is because whereas stock markets can crash and fluctuate and buy to let property can sit unoccupied; fixed income is less susceptible to economic issues and will continue to provide you with an income regardless.
2. Capital protection vs. Capital growth
Most buy to let investments are advertised as an excellent opportunity for capital growth in which your property will gain value over time dependent on market demand and inflation, which may seem appealing, but with recessions occurring every ten years or so, your investment could easily depreciate in value. In contrast, fixed income assets are capital protected, ensuring that your investment remains secure regardless of a fall in the market, and continue to provide you 100% of your assured capital.
3. Short-term income generation
With % NET rental yields assured for several years as standard for most fixed income investments, your income with take the form of a steady source which is perfect for investors relying on income or nearing retirement. The security and safety of this form of investment cannot be understated in comparison to stock investments and the like.
We at LPC Invest work with many local developers in the North and can offer our clients excellent and secure opportunities to invest in fixed income assets assuring anywhere between 5-10% NET for several years. Get in touch today to register your interest and find the right investment for you.