What are index-linked gilts, fixed interest securities, bank deposits equities and real estate investments?
I will do the first two: Index linked gilts are government bonds or govt. borrowing. The difference to odinary gilts are that they are inflation proff. Their rate of interest doe not get eroded biy inflation. So they are attractive in fallin interset rates and increasing inflation, like now. Fixed interest are bonds, either govt. or corporate. The Govt. or company initially borrow money at a fixed rate and the a secondary market is established. As the interst rate )coupon) is fixed the only moveable bit is the price. If interest rates go down bond prices go up and vice versa. Again good in times of falling interest rates.
