Lux Investing

what is a fixed income fund.does the manager invest in fixed income securities ony?

Public Comments

1. Rules of Investment = High Risk High Return. Fixed Income securities have fixed rate of income (relatively low) and also have low rate of risk. If Fund Manager want to gain higher income they should invest in more risky securities, eg. stock ...
2. A fixed income fund is a mutual fund (pooled fund) whose INTENT is to invest the money in lower income/lower risk fixed income securities. It doesn't necessarily follow that it is actually bound to do so and especially not all the time. The prospectus should contain what the fund management can and cannot do so the investors should read that all the time even if the print is small.
3. Every fund has a prospectus that outlines how they invest the money. Read the prospectus for the fund you are interested in and it will explain it in detail.