share The market has become quite unstable these days. In such a situation, many investors must be looking for other investment options. In such a situation, bonds can be a good option. Here you get higher returns compared to FD and other saving schemes. Also, the risk here is less as compared to the stock market. Bonds are a fixed return income source. Apart from governments, private companies also issue bonds. When the government or a private company needs money, they issue bonds. These bonds come with a fixed return rate and fixed tenure. Let us know how much return is available here.
How much return do you get in bonds?
Companies issuing bonds usually offer returns between 7 to 14 percent. This is a fixed return offered by companies. Investors can easily get 9 to 12 percent returns by investing in bonds. That means you get better returns in bonds as compared to FD and other saving schemes.
How safe are bonds?
There are two types of bonds according to risk. Secured bonds and unsecured bonds. Secured bonds are completely safe and investing in them is completely safe. Such bonds come with collateral. That is, the company pledges something as security to repay the money it is taking from you, which can be confiscated in circumstances like default. Whereas there is a lot of risk in unsecured bonds, because in this the company does not pledge anything of its own. If you are investing in an unsecured bond and that company defaults, your money will be lost.
