Fixed income investments play a crucial role in a balanced portfolio by providing stability, income, and diversification. They are considered less risky than stocks and can help cushion the impact of market volatility.

Some common examples of fixed income investments include bonds, treasury securities, certificates of deposit (CDs), and money market funds. These investments typically pay a fixed interest rate over a set period of time.

Fixed income investments provide a reliable source of income and act as a counterbalance to the volatility of stocks. They can help reduce overall portfolio risk and provide stability during market downturns.

Investors should consider factors such as credit quality, interest rate risk, maturity, and liquidity when choosing fixed income investments. It’s important to diversify across different types of fixed income securities to spread risk.