Fixed income is a form of a financial investment which provides a higher interest
rate than what you get with a regular savings account. It is considered as one of
the safest investment options since it generates fixed returns in the form of offering
interest payouts to the investor and you get back your principal amount on maturity.
You invest your money in fixed income securities that provide you complete protection
for your capital. There are many securities covered in fixed income such as Non-Convertible
Debentures (NCD), commercial papers, Bonds, capital gain bonds (u/s 54 ec), tax
The interest amount of a fixed income security is defined in advance, which provides
an additional sense of security to the investor.