Investing in bonds - Advantages and disadvantages

Investing in bonds is an alternative for purchase of shares. It is also a security with a right to payment of income and a right to repayment of the amount owed. Bonds are primarily issued by corporate entities. However, the State is no exception. Very often you will come across the term corporate bonds.

• Superior valuation
• Higher investment risk
• Easy online shopping

On the one hand, a bond is a means of financing, on the other hand it is a investment instrument. Each bond is of course linked to basic parameters. From designation, issuer, term, to form and more.

Basic bond division

Investing in bonds takes many forms. There are varied bond distribution. For example, by issuer, by maturity, by interest rate and by collateral. This is also why you will find anti-inflation bonds, corporate bonds, secured bonds, savings bonds and government bonds.

Investing in bonds in questions and answers

If you are looking to invest in bonds, there are some things you should check before you invest. Focus primarily on the reliability of the company, its history, its assets and its future vision. Perhaps because of the necessity of these obligations do bonds fall under risky investments. You can read the pros and cons of bonds in the questions and answers below.