Bonds
Bonds
Benefits of Bonds
Higher liquidity
Since corporate debt funds are generated to satisfy the short term financing requirements of a business, they too are short term in nature. Also, corporate bond mutual funds can be obtained and sold as per the wish of the investor.
Offers diversification
Almost every investor has heard the phrase “don’t put your eggs in one basket.” It may be a cliché, but it's time-tested wisdom nonetheless. Over time, greater diversification can provide investors with better risk-adjusted returns
Preserve principal
Fixed income investments are very useful for people nearing the point where they will need to use the cash they have invested – for instance, an investor within five years of retirement or a parent whose child is starting college.
Possess tax advantages
Certain types of bonds can also be useful for those who need to reduce their tax burdens. While the income on bank instruments, most money market funds, and equities are taxable unless held in a tax-deferred account.
Bonds Partner
