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Trending: Top Three Emerging Markets Equity Funds
Daniel Cross
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These funds specifically invest in emerging market economies with the largest being China...
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This article will discuss some of the differences between fixed income and bonds.
However, there are many other types of fixed income securities. For example, sometimes companies will issue preferred shares. These securities are a hybrid of bonds and equities, in that they receive distributions before equity holders but after bondholders. Preferred stocks carry ownership rights like equities, but typically do not offer voting rights. A preferred stock fund that investors can purchase is the Nuveen Preferred Securities Fund (NPSAX).
Alternatively, there are other fixed income securities available. Some mutual funds contain mortgage-backed securities or bank loans. Examples of these include the Fidelity Mortgage Securities Fund (FMSFX) or the Fidelity Floating Rate High Income Fund (FFRHX). The FMSFX fund invests at least 80% of assets in investment-grade mortgage-related securities. This fund currently yields 2.1%. Meanwhile, the FFRHX fund invests at least 80% of assets in floating rate loans, which are often lower-quality debt securities, and other floating rate debt securities.
Another risk to be aware of is default risk. Default risk is the risk of an issuer defaulting on its contractual agreement, and failing to repay principal. Different fixed income securities carry varying levels of default risk. Higher-investment grade corporate bonds, such as those with ‘AAA’ credit ratings, tend to have very low default risk. On the other hand, floating rate loans tend to be lower-quality bonds with higher default risk. Ultimately, investors should determine their own particular needs and risk tolerances before investing.
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News
Daniel Cross
|
These funds specifically invest in emerging market economies with the largest being China...
Jayden Sangha
|
In this article, we will take a closer look at the upcoming initiatives...
Kristan Wojnar, RCC™
|
This week we are tackling the practice management topics of a client-centric approach,...
Find out why $30 trillon is invested in mutual funds.
Download our free report
Find out why $30 trillon is invested in mutual funds.
Download our free report
Find out why $30 trillon is invested in mutual funds.
Mutual Fund Education
Justin Kuepper
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Let's take a closer look at how ESG investments have outperformed during the...
Mutual Fund Education
Daniel Cross
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While CITs and mutual funds share many similarities, there are some key differences...
Mutual Fund Education
Sam Bourgi
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The phrase ‘bear market’ has been thrown around a lot lately, but it...
This article will discuss some of the differences between fixed income and bonds.
However, there are many other types of fixed income securities. For example, sometimes companies will issue preferred shares. These securities are a hybrid of bonds and equities, in that they receive distributions before equity holders but after bondholders. Preferred stocks carry ownership rights like equities, but typically do not offer voting rights. A preferred stock fund that investors can purchase is the Nuveen Preferred Securities Fund (NPSAX).
Alternatively, there are other fixed income securities available. Some mutual funds contain mortgage-backed securities or bank loans. Examples of these include the Fidelity Mortgage Securities Fund (FMSFX) or the Fidelity Floating Rate High Income Fund (FFRHX). The FMSFX fund invests at least 80% of assets in investment-grade mortgage-related securities. This fund currently yields 2.1%. Meanwhile, the FFRHX fund invests at least 80% of assets in floating rate loans, which are often lower-quality debt securities, and other floating rate debt securities.
Another risk to be aware of is default risk. Default risk is the risk of an issuer defaulting on its contractual agreement, and failing to repay principal. Different fixed income securities carry varying levels of default risk. Higher-investment grade corporate bonds, such as those with ‘AAA’ credit ratings, tend to have very low default risk. On the other hand, floating rate loans tend to be lower-quality bonds with higher default risk. Ultimately, investors should determine their own particular needs and risk tolerances before investing.
Receive email updates about best performers, news, CE accredited webcasts and more.
News
Daniel Cross
|
These funds specifically invest in emerging market economies with the largest being China...
Jayden Sangha
|
In this article, we will take a closer look at the upcoming initiatives...
Kristan Wojnar, RCC™
|
This week we are tackling the practice management topics of a client-centric approach,...
Find out why $30 trillon is invested in mutual funds.
Download our free report
Find out why $30 trillon is invested in mutual funds.
Download our free report
Find out why $30 trillon is invested in mutual funds.
Mutual Fund Education
Justin Kuepper
|
Let's take a closer look at how ESG investments have outperformed during the...
Mutual Fund Education
Daniel Cross
|
While CITs and mutual funds share many similarities, there are some key differences...
Mutual Fund Education
Sam Bourgi
|
The phrase ‘bear market’ has been thrown around a lot lately, but it...