The Smart Investors

Yes, in most instances, fixed-income investments (such as bonds) are safer when compared with stocks. They make periodic interest payments and are relatively more secure. It is useful as capital preservation and income. The stocks are more volatile yet they attract higher potential returns. A mix of these two asset classes will help create a balance.

Fixed income is generally safer, yes, but it is not risk-free either. Inflation risk, credit risk, or changing interest rates can hurt bondholders. On the other hand, stocks carry volatility but it has proven to outperform fixed income over a long period.

Personally, I see fixed income as a defensive tool in a portfolio rather than as a wealth developing asset. It's safer than stocks in terms of capital preservation, but won't grow your wealth.