Why invest in Fixed Income?
A bond portfolio can provide a stable fixed income investment that also protects your funds, but how do you determine if you’re on the right track?
TPT Wealth can cut through some of the uncertainty with the help of managed funds. With managed funds, you can use the expertise, experience, and financial insight of our investment management team to work towards your individual investment goals.
With that said, below are a few investment basics that may help you navigate through our offerings and help you determine which investment security, asset, or strategy is ideal for you.
This information is intended to be general in nature and does not take into account the investment objectives, financial situation, or particular needs of any particular person. Before acting on any advice, consider whether it is appropriate for your circumstances and seek independent advice. Always read the relevant Product Disclosure Statements (PDS) and other disclosure documents including the Target Market Determinations before making any decisions.
Cash & Income Funds
Aiming for capital stability and consistent investment returns.
Investment Growth Funds
Potential for higher average investment returns over the long term.
All investments involve various elements of risk. Whilst TPT Wealth cannot eliminate all risks associated with an investment in the TPT At Call Fund, Growth Funds and TPT Wealth Income Funds (including the risk of loss of income and capital invested), as Responsible Entity and Investment Manager we employ a range of strategies that seek to actively identify, assess, manage, and reduce risk. Neither TPT Wealth, nor MyState Limited or MyState Bank Limited guarantee the repayment of capital or the performance of the TPT At Call Fund, Growth Funds and TPT Wealth Income Funds. For important information about Funds and their risks, please refer to the Fund’s PDS and TMD.
ASIC Benchmark Disclosures:
ASIC has developed a range of benchmarks for unlisted mortgage schemes (such as the Income Funds) the enable investors to understand the risks and assess the suitability of the investments. This information is updated on a quarterly basis and made available on this website.
Why invest with TPT Wealth?
Short, medium to long term investments
Over 30 years experience
Invest in assets generally not available to retail investors
24/7 access to your investments via our online investor portal
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What is a fixed income investment?
Fixed income is a class of assets and securities that pay out fixed amounts of income to investors. These amounts are typically paid through interest or dividends, where the income continues regularly until the maturity of the investment.
To finance large projects and fund day-to-day operations, companies and governments issue debt securities to investors. In exchange for lending their funds, the investors then receive a fixed interest rate in return. Upon maturity of their investment, investors are also repaid their principal investment plus interest.
Fixed income investors are also usually paid before common stockholders in the event of bankruptcy. However your capital is not guaranteed.
When developing a diversified portfolio, investors often consider fixed income securities, as the percentage of their portfolio devoted to fixed income investments is typically determined by their investing style.
What are some examples of fixed income investments?
The most common fixed income products are government and corporate bonds, which pay a fixed interest rate to investors. Investors can purchase fixed income securities directly as well as through exchange-traded funds (ETFs) or mutual funds.
There are three types of bonds commonly traded in Australia: Australian Government Bonds (AGBs), Semi Government Bonds (Semis), and corporate bonds.
AGBs are also known as Treasury Bonds and can be bought or sold on the Australian Securities Exchange (ASX), while Semis are only issued through and traded among state and territory corporations. Finally, corporate bonds are issued and traded in the Over-The-Counter (OTC) market and typically have a high buy-in cost.
Before you invest in bonds, it’s important to thoroughly understand the risks involved in this investment type, especially as there are bad actors who may be seeking to scam you out of your hard-earned funds.
One way to check the legitimacy of offered bonds is if the prospectus is publicly disclosed on the Australian Securities & Investments Commission’s (ASIC’s) offer notice board.
For fund management entities, meanwhile, search for publicly accessible disclosures and reports regarding these matters, as they reflect the knowledge base of your chosen investment management team’s wealth management efforts. For our part at TPT Wealth, we have a dedicated directory for our disclosures and reports, which you can access at any time.
How does equity differ from fixed income?
Equity and fixed income markets differ mainly in the types of securities they trade. Equity markets are dominated by stocks, while fixed income markets focus more on bonds, making the latter more accessible compared to the former.
The level of risk involved is also different between the two. Investing in stocks may offer higher or more lucrative returns compared to fixed income investments, but they also carry a higher risk as a result due to the volatility of day-to-day stock trading.
Though fixed income securities may seem to have a comparatively lower yield compared to equity securities, capital appreciation is still possible depending on the investment strategies involved.
This is why it’s important to have professional guidance when investing, especially if you’re just starting. There are certain risks involved in both markets that are more easily recognisable through experience, and TPT Wealth may be able to guide you through navigating these risks, regardless of whether you’re looking to grow conservative investments or personal investments, or dipping your toes into higher-risk asset management.
How do I choose the right fixed income investments for myself?
There are several options for fixed income investments available. One can opt for a cash investment fund, which is a short-term obligation with a maturity of around ninety days, or a mortgage fund, which can be used to acquire or develop real estate properties through borrowers in exchange for regular or fixed income.
Then there’s also the fixed income fund.
A fixed income fund is a class of assets and securities, commonly in the form of government or corporate bonds, that pay out fixed amounts of cash flows to investors. To this end, there are several types of corporate bonds available within the country, each with a varied yield.
TPT Wealth offers managed funds with a diversified investment strategy, ranging from loans secured through mortgages, bonds, credit market securities, and shorter-term investments like money market-type securities.
That being said like with all investments, there is an element of risk involved. Income funds have the advantage of comparatively lower risk compared to other investment types, which gives them a prevailing popularity within financial circles for various reasons.
Managed funds can also help diversify your portfolio, as you can dedicate portions of your investments to different investment strategies with the guidance of our investment management team.
It’s easy to find yourself overwhelmed by the wealth of choices available without professional guidance to point you in the right direction. Whether you’re looking for fixed income, a diversified portfolio, or something in between, TPT Wealth can help guide you through your investment strategies.
Start your journey with TPT Wealth, and apply for an account today.