Investment Bonds - Everything You Need to Know
Investment bonds are life insurance policies where you can invest a lump sum of cash, giving you the potential for medium to long-term growth on your money. Some investment bonds run for a fixed term, whereas others have no set investment term. When you cash investment bonds in, how much you get back depends on how well, or how badly, the investment has done.
The COVID-19 outbreak has thrown global stock markets into turmoil, but
Many investment bonds have gained value in 2020, and that's helped those with balanced portfolios. Generally, bonds do have a reputation for safety, but they can still lose value.
Why It’s Important To Invest ?
If you are able, it is a good idea to put some of your income into something which can benefit you in the long run. It is important to invest and have savings, as unavoidable circumstances can arise anytime and anywhere. If you choose to invest money into something which would guarantee maximum returns with minimum risks in future, you will be prepared for eventualities that may come your way
What are Bonds?
Bonds are issued by organizations generally for a period of more than one year to raise money by borrowing.
Organizations in order to raise capital issue bond to investors which is nothing but a financial contract, where the organization promises to pay the principal amount and interest to the holder of the bond after a certain date. This is referred to as the maturity date.
5 Best Bonds to Buy or Trade
Vanguard Total Market Bond ETF on eToro - 3.3% Annual Return.
Euro-Bund ETF on AVATrade - 9% Annual Return.
US TBond 30Y on Markets.com - 22% Annual Returns.
Euro BTP Future Bonds on IG - 12.5% Annual Return.
Patryk Peltonen Bond Portfolio on eToro - 10.2% Annual Return.