Bonds

What is bond ?

Bonds – also known as fixed income instruments – are used by governments or companies to raise money by borrowing from investors. Bonds are typically issued to raise funds for specific projects. In return, the bond issuer promises to pay back the investment, with interest, over a certain period of time.

benefits of Bonds

Consistent Income stream

Payments are distributed at regular intervals.

Capital Preservation

Bonds are good way to preserve capital while investing.

Diversification

Bonds help offset the risk of exposure to more volatile stock holdings

Lower Risk

The bond issuer will return the face value of the security to the bond holder at maturity