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Why are my fixed income investments fluctuating?

We understand that you’re concerned about your fixed income investments, especially considering recent market volatility and uncertainty. 


Here’s how inflation is impacting your bonds and causing them to fluctuate

  • The fixed income portion of your portfolio is largely composed of investment funds that hold bonds.   
  • When interest rates rise, bond prices fall, resulting in a decrease in the value of your portfolio



You own a bond that pays 2% interest. If the market rate is currently 3%, you can expect that your bond will hold less value at the time of sale than one with a price that matches the market.   


As a result, this investment will have a negative return even though the bond's principal and interest payments are still guaranteed long-term. 


Take a look at the latest major market fluctuations in our Investment Guide


Do you have questions about your investments? 

Make an appointment with an advisor

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