Bonds Can Diversify a Stock Portfolio
The strategy of diversification makes your portfolio safer. Some days, stocks will fall and bonds will rise. Other days, stocks will rise and bonds will fall.
If your portfolio is half stocks and half bonds, then your bond investments may rise while your stock investments fall.
A well-diversified portfolio is better positioned to weather any dips in any particular sector.
Did You Know?
Bondholders are only one class of investors interested in a corporation, the most significant other class are shareholders.
It will interest you to know that Bondholders are the first to get repaid if a company goes into liquidation, so it is secure.
How to make money from Bonds
There are two ways to make money by investing in bonds. The first is to hold those bonds until their maturity date and collect interest payments on them.
The second way to profit from bonds is to sell them at a price that’s higher than what you pay initially.
The interest paid on Bonds is pre-set on Wealth.ng, and you get paid annual returns depending on the number of years bought. i.e. 3, 4 or 5 years.
Invest in Bonds today!
