Bonds are normally safer investment instruments. However, you still have to become aware of the risk in bond investment, what if the company that sold you bonds goes bankrupt, what if the company disappears, what if the company does not return your money even after the term of bonds ends? Even when buying government bonds, there is a risk, If the government is corrupt, you can lose your investment. Have you invested in bonds, what’s your experience?
How Safe Are Bonds
- Thread starter nomad
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Each investment instrument will of course have a different level of risk, similarly, bonds also have risks such as liquidity risk, meaning that your bonds are not easy to sell on the secondary market, apart from that, there is also maturity risk. The longer the maturity, the greater the uncertainty.
There is no investment that has no risks but comparatively bonds are safer. I do not have them now but have earned rich dividents in the good old days
The bonds you buy on the securities market do not produce dividends but earn interest, unless you buy investment instruments in mutual funds