Fixed income is based on a simple premise: an investor lends money to a borrower for a specific period, in exchange for agreed, regular interest payments. It might not deliver the thrills of crypto or bring the bonus of brand names you'd drop casually into conversation, but it's been around since medieval times, and it's still going strong.

Until recently, it was also as tricky to navigate as the feudal system. Assets were difficult to access directly, complicated, and designed for people who didn't need money in the first place.

That's all changing, not only because of the entry of new funds in the market (like ourselves), but also because today's investor is more informed and looking for easier ways to balance their exposure to risk. In a market that's increasingly unpredictable, highlights include:

1. Capital preservation as a focus, so you're generally more protected from the upswings and downturns you may find in the sharemarket (= more restful nights)

2. Fixed Income funds are often diversified, so while one asset is down, another is up, and you have more stable returns overall

3. The value of returns are more consistent and predictable, which means you can plan your investments for the future

Like any investment, there are risks, particularly when there's a steep interest rate rise, inflation, or an issuer could default on their debt, but compared to other popular asset classes, you're generally less exposed to volatility.

What are you actually invested in? Here are some of the main ones:

Bank and term deposits: A way to invest money and earn a fixed rate of interest. They usually include some government backed capital protection.

Bonds: Bonds are debt securities issued by governments or corporations to raise capital. When you buy a bond, you're essentially lending money in exchange for regular interest payments and the return of the initial investment in the future.

Mortgage-backed securities are similar; debt securities that consist of a bundle of home loans and other real estate debt, bought from the banks who issue them.

A well-diversified portfolio usually has some allocation to fixed income, and we're into the balanced approach. It's less likely to get your heart racing, but you'll sleep more soundly, and a good night's sleep is a commodity everyone is looking for.

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Sisters Ali & Gaby Rosenberg are the co-founders of Blossom App.