Fixed Interest Investments are the Way of the Future

Since the financial crisis, equities are fast becoming an unappealing option for the professional investor. Fixed interest investments are now proving to be a sophisticated, innovative and smart investment choice amongst the experienced investor.

For years fixed interest investments were never thought of as a smart investment, however since the last financial fall, new and sophisticated fixed interest strategies are constantly being developed.

Peter Dorrian, head of global wealth management at Pimco has advised investors to seek out smart fixed interest investments.

“Most planners start with a high equity allocation based on historical trends, but over the next three to five years – given the outlook for lower growth – we believe they should flip this and make fixed interest the first allocation to lock in known returns,” Dorrian said.

Fixed interest allocations have faced some hurdles in the past, and it comes down to lack of knowledge according to AMP Capital head of credit markets, Jeff Brunton.

Brunton described these asset classes as being one of the least understood options.

However these investment options are quickly gaining momentum as more and more investors decide to lock them into their financial future. The security and long term growth that fixed interest strategies offer is quickly being recognised and winning the respect and business from experienced investors.