Fixed Income Instruments

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Fixed Income Instruments

Fixed Income Instruments offer a fixed rate of return along with the interest getting accumulated over a pre-determined time-period. These instruments are used by investors to diversify their given portfolio; these are not as risky as equities and derivatives. Not to miss, the returns in these investments are reliable, so it’s popular amongst the ‘retired’ investors.   

Fixed Income Instruments comprise of as:  

  • Exchange Traded Funds: These funds are listed & traded on the stock exchanges. S&P, Nifty, and BSE Sensex are a few of the indexes associated with these funds. Exchange Traded Funds (ETFs) can be traded in the cash market on daily basis with Gold ETF being the popular choice amongst its offerings. 
  • Money Market FundsInvestments in money-market instruments take the direct brunt of any increase in the rate of interest, therefore, best suited for short-periods (up to 90 days). They generate a steady income & include short-term certificates of deposits, commercial papers, banker’s acceptance, etc. 
  • Debt FundsThese funds invest in safe instruments like corporate bonds, government bonds & related securities. These are low return, stable investment platform (that don’t invest in volatile stock markets), and low-risk.

Characteristics of Fixed Income Instruments  

  • The tax(s) imposed on fixed income funds are debt funds with short-term capital gains being added to your income & taxed based on the tax-slab.  
  • Here, debt funds offer better returns as compared to money-market funds in the long run.  
  • Being liquid in nature, these instruments can be accessed by the investor & withdrawn anytime. 
  • The aim is to keep the returns stable.

One of the Best Government Fixed Income Investment Options Available in India  

Other Fixed Income Instruments  

  • Post office Recurring Deposit 
  • Post-Office Monthly Income Scheme 
  • Post-Office Time Deposit 
  • Savings Bank Account 
  • Bank Recurring Deposits 
  • Bank Fixed Deposits 
  • Sukanya Samriddhi Yojana 
  • Pradhan Mantri Vaya Vandana Yojana 
  • Senior Citizens Savings Scheme 
  • Public Provident Fund (PPF) 
  • RBI 7.75% Savings Bonds 
  • Kisan Vikas Patra (KVP) 
  • Sovereign Gold Schemes 
  • Stocks and Equity 
  • National Savings Certificate (NSC) 
  • Life Insurance 
  • Capital Gains Tax Exemption Bonds\54 EC Bonds 
  • Health and Other Related Insurance 
  • NPS & Atal Pension Yojana 
  • Pension and Annuity 
  • Mutual Funds 
  • Company Deposits 
  • Investing for NRIs 
  • Income-Tax Planning 
  • Tax-Saving Strategies 


“Are you looking to invest? How about opening your account with Gulaq & start investing in Direct Mutual Funds? Get in touch.” 


*Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing.

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