Fixed Interest investments are especially attractive when interest rates are high because the rates can be "locked in" for a designated term. There is also the prospect of some capital appreciation as interest rates fall. Examples of fixed interest investments include government bonds, debentures, term deposits, unsecured notes and bank bills.
Fixed Interest Trusts aim to produce a regular income with some capital growth over the medium to long term. Interest earned on your investment is fully assessable for income tax purposes in the year it is paid even if the interest is reinvested. Income may be subject to provisional taxation.