How to Choose Profitable Bond Types

The many types of bonds that we can find in the capital market will certainly make novice investors confused about which bonds they should choose in order to make a profit, both from coupons (interest) and from capital gains. So as novice investors, we should not be fixated on bonds that offer high interest, we must also consider factors such as investment objectives, type of bond, length of investment, etc.

Investors should also consider the organization or business who is issuing the bond. If government agencies are issuing the bonds, there is usually some warranty offered, so they are safer than other investments.

These days I do not have any investment in bonds. But when I was investing in bonds, my preference was for government bonds and treasury bills. Corporate bonds are little bit risky.