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

Do you want to have a diversified portfolio? Bonds are a crucial part of that. Here’s how to invest in bonds.

Bonds generate passive income and are important to add to your portfolio, depending on your personal preference. Here’s everything you need to know about 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.

What Is A Bond?

The most common typs of bonds are:  – Corporate bonds – Municipal bonds – Treasury bonds – Bond funds

What Types Of Bonds Are There?

– Bonds are generally less risky than stocks.  – The percentage of interest (return on your investment) is fixed.  – Bonds are good to diversify your portfolio.

Pros Of Investing In Bonds

– Bonds mean you have less liquidity.  – Bonds generally have a lower return on investment.  – The risk that the interest rate changes

Cons Of Investing In Bonds

FOR MORE ABOUT THE HOW TO INVEST IN BONDS, VISIT  RADICAL FIRE