WHAT ARE THE RISKS INVOLVED WITH BOND INVESTMENT? Does that mean we should not invest in bonds?
INTRODUCTION "Successful investing is about managing risk and not avoiding it" - Benjamin Graham. Though bonds are considered safe, no instrument is devoid of risks. Risk is an inherent part of any investment; bonds also carry some risk. However, as compared to other instruments, the bond has lesser risk . As we can see in the above chart, equity and gold returns have been quite volatile, but debt has provided a relatively stable and steady return. However, the main focus of an investor is not on avoiding risk but managing it. WHAT ARE THE RISKS INVOLVED WITH BOND INVESTMENT? If you want to buy different types of bonds such as government bonds , corporate bonds , tax free bonds , zero coupon bonds , PSU bonds , covered bonds etc., there are various online portals like BondsIndia.com , which will show you in simple steps how to invest in bonds . However, investing in bonds is not risk-free; below are some of the risks involved with a bond investme