Fixed income investments generally provide a guarantee return on a fixed investment to investors. One of the most popular types of fixed income products are bonds, through which you as an investor lend money to a government, municipality, corporation, state agency or other entity known as an issuer of the bond.
In return for the money invested, the issuer provides you with a bond in which, it promises to pay you the investor a specified rate of interest during the life of the bond issued and to repay the face value of the bond (the principal) when it matures, or when the due date comes.
Some of these bond investments can offer you the investor a tax-free returns – Such as investment in municipal, state and federal bonds.
Generally, bonds can be useful in an investment strategy that seeks to preserve capital and/or generate a predicable return to the investor when the investment is held to maturity, and it is subject to issuer credit risk of the bond.
A selection of fixed income products
EcoCapital Investment Management Ltd. offers a wide range of fixed income products including:
- Treasury Bills: Ghana Government debt that carries a fixed interest rate, usually within a maturity of 1-year
- Treasury notes and bonds: Ghana Government debt that carries a fixed interest rate, usually with a maturity of 1-10 years. Interest income is exempt from state income taxes
- Sovereign bonds: Issued by a national government and denominated in a foreign currency
- Domestic corporate bonds
- Bond Funds
- Fixed Deposits
- Foreign Municipal bonds: Debts issued by metropolitans, or municipalities that are free from federal taxes and usually free of state and local taxes. Municipal Securities may be subject to some Taxes.
When investing in fixed income products, it is very important you seek tax advice from your independent tax advisor before investing in these various fixed income products.
Our Investment Advisors
As a client of EcoCapital Investment Management Limited, you can be rest assured that our experienced investment advisors are available to help you determine if fixed income investments align to your individual investment objectives and risk tolerance.
Our investment advisors can help you evaluate which specific fixed income investment products may fit within your investment diversification strategy.
For more information about our various fixed income products, call us at +233 030 393 5531 / 2