Mention your investment portfolio, and many people jump to the conclusion that you hold an array of stocks. But savvy investors know that equities aren't everything. The key to developing a sound portfolio is striking the right balance between potential reward, risk, and your future financial needs. To do this, you need a variety of investment vehicles.
Fixed-income securities - including bonds issued by corporations, governments, federal agencies and municipalities, and preferred securities - can be an excellent way to diversify your portfolio. They are generally used to:
Fixed-income securities - including bonds issued by corporations, governments, federal agencies and municipalities, and preferred securities - can be an excellent way to diversify your portfolio. They are generally used to:
- generate current income, and
- set up income payments to help meet your future financial needs.