How To Invest In Bonds [A Simple Beginner’s Guide]


When you start investing, you are probably focused on low-cost index funds or individual stocks.

When you want to diversify your portfolio and lower the risk you’re taking, bonds are the perfect fit.

Here’s everything you need to know about bonds and how to invest in bonds.

A bond is a way to raise money by corporations or governments. When you buy a bond, you buy a part of a loan with the promise to repay this loan to you plus a certain percentage  of interest.

Bonds are generally less risky than stocks. The value of bonds doesn’t change as much as the value of stocks.

Bonds mean that you buy an asset in exchange for your cash. It means that you have less liquidity in  your portfolio.

When you are 100% invested in stocks, you can diversify your portfolio by investing  in bonds.