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Learning Center > Strategies for Investors > Fixed Income Investing   Printer Friendly VersionPrinter Friendly Version
Fixed Income Investing

A bond represents a loan that you, as an investor, make to a government entity, municipality, corporation, or other institution. A bond is a type of fixed income investment because it periodically pays a fixed amount of interest to investors. Bonds repay principal on a specific date called the maturity date. They are typically used to:

  • Generate income to help meet an investor's immediate financial needs.
  • Provide a means of diversification (from stocks) that may help reduce the overall risk of an investment portfolio. Keep in mind that diversification does not protect against a loss in a declining market.
Fundamentals
An introduction to fixed income investing.

Types of Bonds
Bonds can be issued by a wide variety of institutions, including government and corporations.
 

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Investors should consider the investment objectives, risks, charges and expenses of the fund carefully before investing. The prospectus contains this and other important information about the fund. Contact your financial professional for a prospectus and read it carefully before investing.

An investment in our money market funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the funds.

Mutual fund investing involves risks. The investment return and principal value of an investment will fluctuate, and shares, when sold, may be worth more or less than the original cost. Keep in mind that asset allocation and diversification do not assure a profit or protect against loss in declining markets. Investors should consult with their attorney, accountant, and/or tax professional for advice concerning their particular situation.

Mutual funds are distributed by Prudential Investment Management Services LLC, a Prudential Financial company and member SIPC. Prudential Fixed Income Management and Prudential Real Estate Investors are units of Prudential Investment Management, Inc (PIM). Quantitative Management Associates, Jennison Associates, and PIM are registered investment advisors and Prudential Financial companies. Prudential Investments, Prudential Financial, the Rock Prudential logo, Jennison Associates, and Jennison are registered service marks of The Prudential Insurance Company of America, Newark, NJ, and its affiliates.

Mutual Funds: Are not insured by the FDIC or any other federal government agency, may lose value, and are not a deposit of or guaranteed by any bank or any bank affiliate.

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