What are the benefits of investing in bonds?

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1 Answer 790
Shane lee

Answered 8 months ago

Less volatility: Bond prices tend to fluctuate much less than share prices, making them potentially safer investments.

Income: The coupon payments on bonds can provide a predictable and stable revenue stream

Diversification Perhaps the most significant benefit of investing in bonds is the diversification they can bring to your portfolio. Although shares have outperformed bonds over the long term, holding a portion of your portfolio in bonds can help reduce financial risk.

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