Tuesday, 10 May 2016

Why invest in Bonds?

Government entities and corporations raise money by issuing bonds. The issuer of a bond is a borrower who makes interest payments each year. Investors purchase bonds as an investment.

The investor earns interest each year and is repaid their original investment on a specific maturity date. As an investor, you can bnuy individual bonds or a bond mutual fund or exchange-traded fund (ETF)

Why Invest in Bonds?
Many personal financial advisors recommend that investors maintain a diversified investment portfolio consisting of bonds, stocks and cash in varying percentages, depending upon individual circumstances and objectives.

Whatever your investment goals, your investment advisor can help explain the investment options available, taking into account your income needs and tolerance for risk.

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