Prices, performance charts and financial tools to help with your
research. Fixed Interest Securities Neither a borrower or a
lender be If that is your motto then fixed interest isnít for
you (but neither is buying a house on a mortgage, or saving
money in a deposit account). Fixed interest investments, (aka
bonds and gilts) are those where a borrower agrees to pay a
fixed level of interest for a fixed period of time, and then
return the money or (in a small minority of cases) a fixed
interest forever (or until you decide to repay).* The most
common error that novices make is to assume that, because such
loans are only made to reliable borrowers, their money, or their
return, is safe. Profits in the fixed interest area are governed
by three factors: - - Inflation - If inflation rises (or, to be
more accurate, is expected to rise), then the future value of a
fixed income will be worth less, ie the price of these
investments will fall. Today you might pay £10,000 for an £800 a
year income, but if inflation rises