What is one characteristic of a fixed income in segregated funds?

A fixed income in segregated funds primarily involves investments such as bonds and treasury bills. This characteristic is significant because fixed income investments are primarily focused on generating predictable income through interest payments, along with the return of principal upon maturity. This type of investment typically aims to provide stability and mitigate risk, making it a popular choice for investors seeking steady income and capital preservation, particularly in volatile markets.

The nature of fixed income is based on the understanding that these instruments offer lower risk compared to equity investments, which are subject to market fluctuations. By focusing on bonds and treasury bills, fixed income segregated funds provide a conservative investment option that aligns with the financial goals of many investors, especially those nearing retirement or those looking for stability in their investment portfolios.