Fixed Interest Securities

Fixed Interest Securities A type of security which pays fixed, agreed interest at regular intervals. These comprise gilt – edge securities, bonds (taxable and tax – free), preference shares, and debentures. Less risky than equity shares, they offer a better yield for money, but have very limit scope for capital appreciation. AT times of high inflation they are a poor investment as the value of the yield as well as the principal are fast eroded. See APPENDIXE.

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