Understanding Bond Markets: A Guide for Investors

When building a successful investment portfolio, diversification is key. While stocks often take the spotlight, bonds play an equally important role in providing stability and steady income. Whether you're a beginner or an experienced investor, understanding bonds can help you achieve your financial goals.

What Makes Bonds a Good Investment?

A bond is essentially a loan made by an investor to an entity—usually a government or corporation. In return, the issuer pays regular interest and repays the principal at maturity. This makes bonds a predictable and relatively safe investment option.