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Understanding Fixed Income Securities

In the investment world, there are many types of Fixed Income Securities to choose from, however, those accessible to Namibian investors are the Money Market and Bond instruments. “In essence it is the contractual obligation by the issuer of the instrument to pay a fixed rate of interest to the investor at predetermined intervals. The difference between the two investment options is the time to maturity of the investment,” said Shaun Namaseb Portfolio Manager at Capricorn Asset Management.

The key risks associated with fixed interest investments are Interest Rate Risk, Reinvestment Risk, Default Risk, Credit Risk, Liquidity Risk and Inflation Risk.

  • Are you aware of the risks when investing in Fixed Income Securities?
  • Would you like to know how to overcome these risks?
  • What kind of investment would suit you, short or long term?

Explaining how to effectively manage these risks, what Money Markets and Bonds are, we are chatting to Shaun Namaseb, Senior Portfolio Manager at Capricorn Asset Management in the Future Invest Show #2


-99FM Interview by Maggie Forcelledo