Benefits of Investing In Bonds

Benefits of Investing in Bonds or Fixed Income Securities

Here is a list of the benefits of investing in Bonds or Fixed Income Securities.

Benefits of Investing in Bonds or Fixed Income Securities:

Diversification

Historically, the returns of stocks and bonds have not moved up and down at the same time. The practice of spreading money among different asset categories to reduce risk is known as diversification.

Provides a predictable income stream

The investor knows how much interest they can expect to receive, how often they’ll receive it, and when their principal will be repaid.

Transparency

Investors can readily access real-time price and volume information on the SGX website and via trading platforms offered by their brokers. With this transparency, investors can regularly monitor and have up-to-date information on their investments.

Flexibility

Investors can buy and sell fixed income securities on SGX through a broker anytime during trading hours, just like shares. Also, fixed income securities can be bought and sold using familiar stock trading techniques such as stop-loss orders, limit orders and margin purchases.

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