The fixed term refers to a contractually defined period during which an investment is locked and cannot be accessed or can only be accessed with restrictions.
Typical examples include fixed deposits, structured products, closed-end funds, or other investment vehicles with a predetermined holding period. During the fixed term, the capital is illiquid, which is often compensated by higher returns or a more predictable income structure.
For investors, the fixed term is an important parameter in liquidity planning, as it determines when the invested capital becomes available again.
In the context of the StabilityFrame model by DEECKE Financial Solutions, the fixed term is, for example, five years, during which returns can either be reinvested or distributed quarterly.
