What is the primary characteristic of fixed income securities?

Guaranteed returns on investments High volatility and market risk Unlimited potential for growth Investment in tangible assets

Which type of investor typically favors fixed income securities?

Risk-averse investors seeking stable returns High-risk investors seeking maximum profits Investors focused on short-term gains Investors primarily interested in technology startups

What is a key advantage of debt mutual funds?

Higher returns compared to standard savings schemes Exposure to high-growth technology companies Direct ownership of real estate assets Unlimited potential for capital appreciation

What is a defining feature of money market instruments as fixed income securities?

Short maturity period, typically less than a year Long-term investment horizon spanning decades Investment in emerging market equities High risk, high reward investment strategy

Why might investing in fixed income securities reduce the real value of invested money?

Lack of adjustments for inflation High management fees associated with mutual funds Volatility in the cryptocurrency market Unexpected changes in government regulations