Why Bond Investing?

Why Bond Investing?

Fixed deposits are safe but have no guarantee of inflation-beating returns.

Fixed deposits are safe but have no guarantee of inflation-beating returns.

Stocks and mutual funds can generate an inflation-beating return however the volatility in the short term does not guarantee a regular income.

Stocks and mutual funds can generate an inflation-beating return however the volatility in the short term does not guarantee a regular income.

If you need something which is safe but generates more return than inflation. This is where the concept of BOND investments comes into play.

If you need something which is safe but generates more return than inflation. This is where the concept of BOND investments comes into play.

When a company wants to grow it needs money and to borrow money from retail investors like you and me they offer BONDS.

When a company wants to grow it needs money and to borrow money from retail investors like you and me they offer BONDS.

This is basically a guarantee that you will receive a fixed interest on the investment on the maturity of a particular period if you lend.

This is basically a guarantee that you will receive a fixed interest on the investment on the maturity of a particular period if you lend.