Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested.
Bonds can provide a predictable stream of income through regular coupon payments. Across various segments, from government to corporate debt, yields have become more attractive offering meaningful income potential.
Bonds may help investors preserve their money, (i.e.savings) while potentially providing more yield than idle cash.
Fixed income investments can bring balance and stability to portfolios. They offer a reliable source of income and can help cushion portfolios through different market conditions.
Risk: Diversification and asset allocation may not fully protect you from market risk.
Actively managed funds are overseen by a fund manager who selects and manages investments, pursuing attractive opportunities while seeking above-benchmark returns. With experts across the world’s bond markets, BlackRock combines global reach with local expertise to identify compelling opportunities. In addition, BlackRock offers a wide range of investment solutions across mutual funds, index funds, and ETFs — providing investors with flexibility to meet different objectives and preferences.
Unconstrained fixed income strategies are benchmark free. This means they can navigate across the breadth of the fixed income universe.
Short duration strategies may be suitable for those looking to reduce the effects of a change in interest rates.
Investment grade credit strategies are those that have a lower risk of credit default and may be an option for conservative investors.
High yield funds have lower credit ratings than investment grade bonds and may be an option for investors looking for potentially higher return and willing to take on more risk of default.
Emerging markets debt is issued by countries and companies in developing economies and nations. BlackRock has a variety of emerging market debt funds to choose from for those wanting to capture the opportunities present in emerging economies.
There are four major risks associated with fixed income:
You could manage these risks by diversifying investments within your fixed income portfolio.
Risk: While the investment approach described herein seeks to control risk, risk cannot be eliminated.
A fixed income portfolio is a collection of investments—such as government or corporate bonds—designed to deliver regular income and preserve capital. Its main goal is to generate steady income, reduce overall portfolio risk, and help protect your initial investment.
Fixed income investments, like bonds, are generally more stable and predictable than equities (stocks). When you invest in fixed income, you typically receive regular interest payments and your money back at the end of the term. Equities, on the other hand, offer higher growth potential but come with more ups and downs. Including both in a portfolio can help balance risk and return—fixed income adds stability, while equities contribute to growth potential.
Fixed income investments play a vital role in building a stable and diversified portfolio. They are designed to provide regular income, help preserve capital during market fluctuations, and could reduce overall A well-structured fixed income strategy can smooth out returns in volatile markets, enhance portfolio resilience, and support long-term financial objectives. By complementing growth-oriented assets like equities, fixed income contributes to a more balanced and disciplined investment approach.
Risk management cannot fully eliminate the risk of investment loss.
Fixed income investments are designed to deliver consistent income while helping preserve capital. The most familiar option is bonds, including government bonds like UK gilts or US Treasuries—typically low-risk and backed by national governments. Corporate bonds offer higher returns but carry more risk, while municipal bonds may provide tax advantages. All bonds pay interest and return your initial investment at maturity.
Other fixed income options include Asset-Backed Securities (ABS) and Exchange-Traded Funds (ETFs). ABS are backed by pools of assets such as mortgages or loans and can offer competitive yields and diversification, though they may be more complex. ETFs provide access to a broad range of fixed income securities in a single, professionally managed investment, offering liquidity and cost efficiency. Together, these instruments can support a strategy focused on income, stability, or diversification.
Interest rates have a significant impact on fixed income investments like bonds. When interest rates rise, bond prices generally fall because newer bonds are issued with higher yields, making older bonds with lower interest rates less attractive. Conversely, when rates fall, bond prices tend to rise. This inverse relationship between interest rates and bond prices is a key consideration for investors, as it can affect the value of their fixed income portfolio over time.
Fixed income investments are widely available and easy to access. You can invest through most banks or online investment platforms, which offer a range of options including government and corporate bonds, as well as fixed income ETFs. These products are designed to suit different goals—whether you're looking for steady income, capital preservation, or a balanced portfolio.
Fixed income is especially well-suited for those who prioritise stability and capital preservation. Retirees or individuals approaching retirement often rely on fixed income for steady payouts and lower volatility compared to equities.
But fixed income isn’t just for older investors. Younger investors can also benefit by including it as part of a balanced portfolio. It can help smooth out market ups and downs, provide regular income, and add diversification alongside growth-oriented investments like equities. Even a small allocation can support long-term financial planning by and helping build a more resilient investment strategy.
Risk management cannot fully eliminate the risk of investment loss.
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