Why might you consider investing in bonds?

Question

Quizplus · Accepted Answer

Investing in bonds can be a wise choice for many investors as it offers diversification, steady income, and safety if held to maturity. Diversification is the practice of investing in multiple types of assets to spread risk, and bonds can help reduce overall portfolio risk when combined with other investments like stocks. Bonds also offer predictable income payments in the form of interest, making them a popular choice for retirees or those seeking regular income. Lastly, bonds can be a safe investment if held until maturity as they offer a fixed return and are backed by the issuer's credit rating.

Why Might You Consider Investing in Bonds