Bonds are a crucial part of a balanced investment portfolio, offering a reliable source of fixed income. Designed for those who seek stability, bonds are debt securities that provide a steady return over time with relatively lower risk compared to other investments.
Bonds represent a loan made by an investor to a borrower, typically a corporation or government. In return for the loan, the issuer promises to pay periodic interest and return the principal at maturity. Bonds are ideal for those who prefer a predictable income stream and are generally considered safer than stocks.
Types of Bonds
- Government Bonds
- Corporate Bonds
- Municipal Bonds
- Sovereign Gold Bonds (SGBs)
Features of Bonds
- Fixed Income
- Capital Preservation
- Diversification
- Liquidity
- Tax Benefits
Investing in bonds is a wise choice for those who seek steady and reliable returns while preserving their capital. With various types of bonds available, you can tailor your bond investments to align with your financial goals.