FIXED IN-COME BOND VS REAL ESTATE INVESTMENT.
Investors looking for an alternative kind of investment often turn their attention to bonds or real estate. Both asset classes are important pieces of a diversified portfolio, and both come with advantages and disadvantages. Here’s are some information that will help you better understand some of the pros and cons of both types of investments. WHAT IS FIXED INCOME SECURITIES/ BOND? Fixed income securities are a type of debt instrument that provides returns in the form of regular, or fixed, interest payments and repayments of the principal when the security reaches maturity. The instruments are issued by governments, corporations, and other entities to finance their operations. They differ from equity, as they do not entail an ownership interest in a company, but they confer a seniority of claim, as compared to equity interests, in cases of bankruptcy or default. Examples: Bond, Treasury Bills, Money Market Instrument. WHAT IS REAL ESTATE INVESTMENT? ...