Fixed income is a defensive asset class that can play an important role in a well diversified investment portfolio. It is generally considered lower risk than shares, and provides regular interest payments that can be an ideal way to produce a steady source of income.
What role do bonds traditionally play in investment portfolios? What is the difference between bonds and cash and term deposits? What is the correct level of bonds to include in your portfolio and how do you go about incorporating bonds into your asset mix to gain this exposure?