Which of the following is a feature of fixed income investments?

Fixed income investments are characterized by their regular and predictable income stream, which is primarily generated through interest payments. This is why the option stating that they pay fixed interest over time is the correct choice. Unlike equities, which can experience significant price volatility and may not provide guaranteed returns, fixed income securities, such as bonds, typically offer a consistent interest rate that investors can rely on over the life of the investment.

The concept of fixed income is centered on the idea that investors receive regular coupon payments at predetermined intervals, which contributes to the stability and lower risk profile of these instruments compared to stocks. Investors often turn to fixed income securities for income generation, particularly in retirement portfolios, where stability of cash flow is crucial.

The other options describe aspects that do not align with the fundamental attributes of fixed income investments. For instance, while some fluctuations in value do occur, the essence of fixed income is its stable income generation rather than wide value fluctuations. Capital appreciation plays a lesser role because the primary focus is on income rather than growth in value. Lastly, while fixed income investments are generally considered safer than equities, they are not completely risk-free, as they still carry credit risk, interest rate risk, and inflation risk.