What Are Bonds?

Bonds are basically loans issued by the government or a corporation, of which the investor is the lender. In return, the bond issuer will usually pay the bondholder a fixed interest over a predetermined period, agreed on at the time of purchase. This interest rate is known as a coupon. The investor will get back the borrowed amount, also known as face value, par value or principal amount, on the maturity date.

Why invest in bonds?

01

Fixed Income

Bondholders enjoy fixed payments regularly until the bond matures, which is a form of passive income.

02

Preservation of Capital

An ideal capital preservation portfolio should have at least some allocation to bonds.

03

Less Risky

Bondholders are paid first in the event that a corporation encounters bankruptcy.

Your Handy Guide to Bonds

Adding bonds can help diversify and create a more balanced portfolio. New to Bonds? Fret not, we're here to help!

Find out the what, why, how and risks involved in these infographics put together just for you. We will also take you through the common terms and various sections of an entire bond factsheet.

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