Brought to you by The Blossom App

Fixed Income is based on a simple premise: A lender lends money to a borrower for a specific period, in exchange for agreed, regular interest payments. 

This might not deliver the thrills of crypto or bring the bonus of brand names you’d drop casually into conversation, but it’s been around since medieval times, and it’s still going strong.

Until recently, it was also as tricky to navigate as the feudal system. Assets were difficult to access directly, complicated, and designed for people who didn’t need money in the first place. 

That’s all changing now, not only because of the entry into the market of new Funds like Blossom, but also because today’s investor is more informed and looking for easier ways to balance their exposure to risk. In a market that’s increasingly unpredictable, investors typically seek out opportunities where:

1. Capital preservation is a focus, so you’re generally more protected from the upswings and downturns you may find in the share market (= more restful nights).
2. Lower risk and diversification such as Fixed Income Funds , so whilst one asset is down, another is up, and you have more stable returns overall. 
3. The value of returns is more consistent and predictable, which means you can plan your investments for the future.

Like any investment, there are risks – such as a steep interest rate rise, inflation, or an issuer  defaulting on itsdebt – but compared to other popular asset classes, you’re generally less exposed to volatility.

What are you actually invested in? We’ll cover some of the main ones: 

• Bank and Term deposits: A way to invest money and earn a fixed rate of interest. They usually include some Government Backed capital protection. 
• Bonds: Bonds are debt securities issued by governments or corporations to raise capital. When you buy a bond, you’re essentially lending money in exchange for regular interest payments and the return of the initial investment in the future. 
• Mortgage Backed Securities are similar; debt securities that consist of a bundle of home loans and other real estate debt, bought from the banks who issue them.

A well-diversified portfolio usually has some allocation to Fixed Income. Blossom App gives our clients direct access to the benefits. It’s less likely to get your heart racing, but you’ll sleep more soundly, and a good night’s sleep is a commodity everyone is looking for.

Important Information: BlossomApp Pty Ltd may pay fees to 1st Street Financial in relation to investments in the Blossom Fund.