When it comes to constructing a balanced investment portfolio, one crucial asset class is fixed income. Fixed income investments, such as bonds, serve as the bedrock of stability, providing a predictable stream of income and acting as a counterbalance to the volatility of equities. Fixed income refers to investment securities that generate a fixed or predictable stream of income over a specified period. The most common types of fixed income investments are bonds, which are essentially loans made by investors to governments, municipalities, corporations, or other entities. These bonds typically have a predetermined interest rate, maturity date, and regular interest payments. Pros of Fixed Income Stability and Predictability Fixed income investments, primarily in the form of bonds, provide a predictable stream of income and serve as a counterbalance to the volatility of equities. Bonds generate a fixed income over a specified period, offering a level of stability that can help cushion the impact of market downturns. This reliability makes them essential for constructing a balanced investment portfolio. Capital Preservation One primary objective of fixed income investments is to preserve capital. While equities are susceptible to