Fixed income refers to a type of investment that pays investors fixed interest or dividend payments until their maturity date. At maturity, investors are repaid the principal amount they had invested plus the interest or dividend payments throughout the investment term.
The investment must offer a fixed rate of return. This means that no matter what happens in the market, you will continually earn the same interest rate on your investment but you have the potential of your capital being at risk. (Based on certain conditions of the investment)
Capital protected investments can provide profit potential. Capital protected assures that investing $100 will at least allow you to recover the same amount of $100 after the investment period. If the product generates positive returns (+15%), you yield a positive return of $115.
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