info@ubinvestments.in
+91 9156751442
BONDS
BONDS
"Invest In Bonds Which Offers upto 12% Of Fixed Return. Bonds can play a vital role in any investment portfolio. Bonds yield income, are often considered less risky than stocks and can help diversify your portfolio."
What are bonds?
A bond is a debt security, similar to an IOU. Borrowers issue bonds to raise money from investors willing to lend them money for a certain amount of time.
When you buy a bond, you are lending to the issuer, which may be a government, municipality, or corporation. In return, the issuer promises to pay you a specified rate of interest during the life of the bond and to repay the principal, also known as face value or par value of the bond, when it "matures," or comes due after a set period of time.
Safety net from unexpected events:
Retirement plans ensure that you are financially prepared in case of an emergency. They also provide financial support in case of critical illnesses or permanent disability due to an accident
Why do people buy bonds?
Investors buy bonds because:
- They provide a predictable income stream. Typically, bonds pay interest twice a year.
- bonds are a way to preserve capital while investing
- Bonds can help offset exposure to more volatile stock holdings.
- Providing operating cash flow
- Financing debt
- Funding capital investments in schools, highways, hospitals, and other projects
What types of bonds are there?
There are three main types of bonds:
- Corporate bonds are debt securities issued by private and public corporations.
- Investment-grade. These bonds have a higher credit rating, implying less credit risk, than high-yield corporate bonds.
- High-yield. These bonds have a lower credit rating, implying higher credit risk, than investment-grade bonds and, therefore, offer higher interest rates in return for the increased risk.
- Municipal bonds, called “munis,” are debt securities issued by states, cities, counties and other government entities.