Simply put, fixed-income securities are the investment products for which the income stream, the maturity date, and the value is known in advance.
Strictly speaking, if a lump sum is invested, either a regular cash flows is paid upon this lump sum, or a regular cash flows is expected and accrued, that investment is considered as a fixed-income security.
Investors like fixed-income securities because of its safety, and regular payments.
There are many types of fixed-income securities.
Money market securities are short-term fixed-income security with terms of one year or less.
GICs are very pupolar among Canadian investors since its inception.
Bonds are the most commonplace fixed-income securities, and have an entire universe of products available.
Fixed-income securities should be an important part of investment in a diversified portfolio. It will not only offer liquidity and constant cash flow to the portfolio, more important, it can bring the safety of your investment in a market downturn.