What is a "fixed income" investment?

A "fixed income" investment refers to financial instruments that pay investors fixed amounts of interest or dividends over a specified period. This category includes bonds, treasury bills, and other debt instruments that typically yield regular interest payments at predetermined intervals.

The term "fixed income" signifies that the income from these investments is not subject to fluctuations based on market conditions, unlike equities or other types of investments that may vary in return based on the performance of the underlying asset. As a result, investors can predict their cash flows, making fixed income investments a popular choice for those seeking a reliable income stream, especially in retirement.

In the context of the other options, investments that provide variable returns based on market performance do not align with the nature of fixed income. Additionally, claiming that investments require no initial capital is misleading, as most fixed income investments require an initial investment. Finally, fixed income investments are not exclusively aimed at growth securities, as they focus primarily on providing stable income rather than capital appreciation.