imageFixed Income Funds

The assets of a fixed income fund are invested in bonds. Bonds usually offer regular (for example annual) interest payments and the repayment of the nominal value on maturity. Those who invest in bonds become the issuer's creditors.

 

The benefits of fixed income funds:

  • Access to a chosen market segment (such as government bonds or corporate bonds)
  • Risks relating to individual equities are mitigated by the number of issuers
  • Individual securities are selected by experts
  • Portfolio is continuously adapted to changes in the market
  • Cash management by the fund manager. In the event of the repayment of bonds or coupon payments, the money is reinvested "automatically"

 

 

Risks to be considered:

  • Bond prices are subject to market fluctuations
  • Changes in interest rates directly affect the prices of bonds
  • The repayment of the nominal amount and ongoing interest payments depend on the issuer's credit rating
  • Exchange rate fluctuations relative to the euro can lead to fluctuations in the fund price

 

You can find our Fixed Income funds here.

 

Examples:

ERSTE Bond Flexible RON (former BCR Obligatiuni)